A year and a half after delisting the shares of Aspen Real Estate, Aspen Group Ltd. (TASE:ASGR), which controls the company, has decided to complete the process and merge its activity into it. Aspen Real Estate currently only has bonds traded on the Tel Aviv Stock Exchange.
Aspen Group, controlled by Roni Zarom, explained that the current situation, in which the two companies deal with different sub-sectors of the real estate market, was burdensome to them, and that the merger would make running the merged company easier, and would also help save costs.
The move also will help Aspen Group to offset accumulated capital losses for tax purposes. The company's financial statements show these as amounting to more than NIS 70million.If the move obtains the required approvals, Aspen Group will issue two new series of bonds to the bondholders of Aspen Real Estate, with similar terms. The market value of the two series is currently close to NIS 50 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010