After selling his holdings in Azorim Investment, Development and Construction Ltd. (TASE: AZRM), Olimpia Real Estate Holdings Ltd. (TASE: OLMP), and Delek Real Estate Ltd. (TASE: DLKR, Ilan Ben-Dov is ending his romance with the real estate companies controlled by Eliezer Fishman.
Tao Tsuot Ltd. (TASE: TAO-M), which is controlled by Ben-Dov, today announced a series of deals in which it sold shares and bonds in Fishman Holdings subsidiaries Jerusalem Economy Ltd. (TASE:ECJM) (JEC), Industrial Buildings Corp. (TASE: IBLD), and Darban Investments Ltd. (TASE: DRBN). Tao remains with only a 3.7% holding in Industrial Building.
In November 2006, Tao bought 22.5% of Darban for NIS 184 million, and later increased the stake to 25.7%. It began divesting the holding in late 2009, in a huge share-swap deal in which Tao transferred to Industrial Building 10.5% of Darban in exchange for 4.9% of Industrial Buildings.
In the current two-part deal, Industrial Buildings and Darban will acquire Tao's remaining 13.4% holding in Darban at NIS 19.95 per share (which compares with an opening price today of NIS 19.55), and at the same time will sell it NIS 44 million worth of Tao's Series C bonds at NIS 0.83 per bond.
In a separate deal, JEC will acquire from Tao 1.35% of Industrial Building at NIS 5.57 per share (which compares with an opening price today of NIS 5.81), and will sell it NIS 44 million worth of Tao's Series C bonds at NIS 0.83 per bond.
The deal increases JEC's holding in Industrial Buildings to over 70%. JEC will report a capital gain of NIS 31.2 million, and Industrial Buildings will report a capital gain of NIS 30 million.
Tao, which will receive NIS 94 million in cash and NIS 75 million worth of bonds, will record a loss of NIS 17.6 million. Tao's equity deficit was NIS 356 million at the end of March.
JEC's share price rose 0.9% today to NIS 23.75, Darban's share price fell 5.3% to NIS 18.75, and Industrial Buildings' share price rose 0.5% to NIS 5.97. Tao's share price rose 2% to NIS 0.209.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2010
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