Summit Real Estate Holdings Ltd. (TASE: SMT) today announced that its subsidiary, Summit Germany Ltd., was seeking to raise €100 million in an issue of shares on London’s Alternative Investment Market (AIM). The proposed offering comes four and a half years after Summit exploited the market crisis to delist Summit Germany from the AIM.
The planned offering will apparently be held at a company value of €150-200 million, before the money. The offering will be held during the first quarter of 2014, but the size of the offering and its terms have not yet been set. Summit's share price rose 6.2% in heavy trading by mid-afternoon on the TASE in response to the announcement.
Germany is Summit's primary market, where it owns, through Summit Germany, 640,000 square meters of income-producing property with an annual net operating income of €40 million. The company also owns properties in Israel.
Summit controlling shareholder Zohar Levy floated Summit Germany on the AIM in 2006. Summit Germany raised €305 million in the IPO and subsequent offerings, but when the global crisis changed the market sentiment, and he exploited the fall in the company's share price to delist it for €70 million in June 2009.
In Israel, Summit's share price rose 120% in 2013, and its current market cap is NIS 750 million. It is refloating Summit Germany after restructuring the company's assets, and made a refinancing deal amount to hundreds of millions of euros on which it reported a handsome capital gain.
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2014
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