Yitzhak Tshuva today delisted Elad Canada Ltd. from the Tel Aviv Stock Exchange (TASE) through a successful offer to purchase the public's holdings in the real estate company through its parent company, Elad Properties. Elad Properties offered to buy the public's 13,238,800 shares, 11.7% of the company, at NIS 16.60 per share, after raising the offer from the original price of NIS 14.78 per share.
Tshuva floated Elad Canada in August 2010 at NIS 19.80 per unit of 100 shares and 175 warrants. The company's series 2 warrants expired in August 2011. The share price closed at NIS 16.48, giving a market cap of NIS 2 billion. The company still has bonds and warrants listed for trading.
"The offer to purchase is partly due to the low trading in Elad Canada's shares since the IPO, which means that there is no added value to justify the listing for either the company or the investors," said Elad Canada. "The offer to purchase will cut costs for Elad Canada and enable investors to realize their holdings at a price higher than the IPO price, notwithstanding the low trading in the shares."
Elad Canada owns 2,800 rental apartments, 1,900 assisted living facility units, 225,000 square meters of commercial space, and three lots in various stages of development of 4,500 housing units. All the properties are in Ontario and Quebec.
Published by Globes [online], Israel business news - www.globes-online.com - on January 2, 2013
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