Parking lot operator enters Azorim acquisition talks

Tsahi Merkur owns Success Parking.

Sources inform ''Globes'' that Success Parking Ltd. owner Tsahi Merkur has joined the list of parties seeking to acquire the controlling interest in Azorim Investment, Development and Construction Ltd. (TASE: AZRM). He follows Yakir Sha'ashua and Pangaea Real Estate Ltd. (TASE:PNGD).

Merkur is in talks with Mizrahi Tefahot Bank (TASE:MZTF), the biggest lender to Azorim controlling shareholder, Boymelgreen Capital Ltd. (TASE:BMGN).

The structure of a possible deal is for Merkur to acquire 51% of Azorim from Boymelgreen Capital at a company value of NIS 750 million, a 20% premium on Azorim's current market cap. He will also receive a one-year call option to buy the balance of Boymelgreen Capital's stake (about 13%) at a premium of 10% on the deal price.

Success Parking operates almost 100 parking lots nationwide, mostly in central Israel. The company's turnover is estimated at over $200 million a year. One of Success Parking's parking lots is Boymelgreen Capital's parking lot at the Assuta Medical Center in Tel Aviv.

Merkur wants to use Azorim to build more parking lots in its projects and on its undeveloped lots until they receive building permits.

Brooklyn developer Shaya Boymelgreen controls Boymelgreen Capital, which owns 64% of Azorim. Azorim's share price rose 0.7% today to NIS 18.05, giving a market cap of NIS 626 million.

Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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