Canadian residential and resorts developer Skyline International Development Inc. has raised C$26.7 million in a private placement. Skyline is owned by Mishorim Development Ltd., (TASE:MSHR) with a 66% stake and by Israel Land Development Company (TASE: ILDC) with 34%.
Skyline raised C$20 million from Dundee Corporation (TSX: DC.A) and Bank of Nova Scotia Inc's (TSX; NYSE: BNS) Dynamic Mutual Funds, and raised C$6.7 million from its current investors who converted owners loans into equity at a company value of C$150 million before money. This placement will precede an IPO by Skyline on the Toronto Stock Exchange or on a US market within 18 months.
Mishorim CEO and Skyline chairman Gil Blutrich said, "In the coming months, Skyline will open two new residential projects at Dearhurst and Horseshoe resorts in Ontario. We believe that their success will help the upcoming IPO. In view of the measures we've taken in the past 18 months and, of course, the private placement, we believe that Mishorim and Skyline have laid the groundwork for the next step to create value for shareholders."
Mishorim's share price rose 13% by early afternoon to NIS 10.49, giving a market cap of NIS 245 million, and Israel Land's share price rose 3.7% to NIS 28.40, giving a market cap of NIS 780 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2011
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