Shikun & Binui Holdings Ltd. (TASE: SKBN) has sold its 25.5% stake in Road 6 franchisee Derech Eretz Highways (1997) Ltd. for NIS 683 million, to TSI Roads LP. Shikun & Binui will report a capital gain of NIS 63 million on the deal. It will continue to own 35% of the toll road's operating company, which it considers as a core business.
Shikun & Binui added that, simultaneously with the sale of the Derech Eretz stake, subsidiary Shikun u'Binui Solel Boneh Building and Infrastructure Ltd. signed an agreement, which came into effect immediately, to carry out work on Road 6 over several years for a total of NIS 470 million.
Bank Leumi (TASE: LUMI) unit Leumi Partners Ltd. owns 18.91% of TSI Roads. Leumi Partners' share of the investment is NIS 143 million, and it has agreed to invest up to an additional NIS 61 million in TSI Roads.
Shikun & Binui CEO Ofer Kotler said, "After being a partner in Road 6 for 15 years, and demonstrating capabilities at every level construction and operating rights we are selling the activity at a handsome profit, and will use the proceeds to expand franchise activity in Israel and overseas."
In a separate notice to the TASE today, Shikun & Binui said that subsidiary Shikun & Binui Real Estate Ltd. sold 193 apartments for NIS 252 million at a sales fair for its "Dream Rosh Ha'Ayin" project which is under construction. The company will receive the proceeds in 2013-15 in line with the project's construction schedule.
Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2013
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