AFI Europe NV, a subsidiary of Africa-Israel Investments Ltd. (TASE:AFIL) unit Africa-Israel Properties Ltd. (TASE: AFPR), plans to raise €130 million in an offering of 35-30% of its shares on the Warsaw Stock Exchange, according to the prospectus published today.
AFI Europe's shareholders' equity for the IPO will be €469 million, including €269 million in owners' loans that will be converted.
AFI Europe's property portfolio was valued by DTZ at €1.13 billion. It contains 32 properties in seven countries in Eastern and Southeastern Europe. The company also owns minority interests in 34 residential and commercial properties in Germany, including 579 apartments and 488 rental units.
Africa-Israel CEO Izzy Cohen said, "This is the first IPO by Africa-Israel in a long time. We consider it further evidence of the resumption of development and construction activity, with the expectation of creating value for shareholders." He added, "The objective of the offering is to speed up development of projects under construction by AFI Europe, thereby strengthening its position as one of Europe's leading real estate companies."
IBI Investment House analyst Shay Lipman said in response to the prospectus, "This is a very positive move by Africa-Israel Properties. It will ease financing since it is making an offer to sell of €30 million." He added, "AFI Europe will find its relations with European banks easier as a separate public company, and it may issue debt to continue development of its projects."
Africa-Israel Investments' share price fell 1% by midday to NIS 24.94, giving a market cap of NIS 2.65 billion, and Africa-Israel Properties' share price fell 3.7% to NIS 57.62, giving a market cap of NIS 1.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 22, 2010
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