The Hagag buyers group has taken over real estate company Asim Investments Ltd. (TASE:ASIM) by acquiring controlling stake in the company from Netz Bonds (2009) Ltd. for NIS 4 million, plus a capital injection of NIS 20 million into the stock market shell, giving it a 90% stake in the company.
The acquisition means that, for the first time, a buyers group is becoming a public company on the TASE. Asim said in its notice to the TASE, that the deal was intended to promote Hagag's real estate interests through a public company.
Asim's share price rose 120% by midday, befor falling back a bit to end the day up 102.6% to NIS 0.08, giving a market cap of NIS 25 million. Turnover was NIS 6.8 million, compared with a normal turnover of a few thousand shekels.
The Hagag buyers group is organized by Yitzhak and Ido Hagag, Igal Weinstein, and Chen Buchnik, all partners in the Hagag Buchnik Weinstein & Co. law firm. Asim will be renamed Hagag.
In addition, Asim will make a placement of shares at a company value of NIS 100 million to Buchnik and Weinstein, resulting in each of them owning 5% of Asim, while Yitzhak and Ido Hagag will own 85%.
Netz Bonds currently owns 50.37% of Asim, Eshid Properties Ltd. owns 8.26%, and Excellence Investments Ltd. (TASE: EXCE) owns 5.44%. Asim Investments has two subsidiaries: Asim Real Estate Ltd. and Asim Holdings Ltd. Asim Investments will forego the subsidiaries, which Netz will own directly when the deal with Hagag is completed.
Asim Investments said that the sale of the company will not affect the debt settlement it reached with its bondholders. By selling the company, Netz is recovering the cost of acquiring the company from Adi Keizman.
Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2010
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