On Friday, Africa-Israel Investments Ltd.'s (TASE:AFIL) bondholders rejected the improved debt settlement offer from Moti Ben-Moshe, and chose instead to sell the controlling stake in subsidiary Africa-Israel Properties, headed by Avi Barzilai, to a group pf investors headed by Big Shopping Centers (2004) Ltd. (TASE:BIG) and Mega Or.
A majority of the series 26-27 bondholders, to whom 51% of the shares in Africa-Israel Properties are mortgaged, voted in favor of the group's offer. The holders of these two series also supported the sale of the unencumbered shares (5%) in Africa-Israel Properties held by Africa-Israel to the investor group, but this proposal did not win a majority among the smaller series 28 bondholders.
Nevertheless, the support of the holders of the two large bond series for the sale of the shares mortgaged to them means that the piecemeal sale of the assets of Africa-Israel is underway.
The sale of the mortgaged shares is still subject to several conditions, chiefly agreement by the bondholders in Africa-Israel Properties to forego their right to immediate repayment in the event of transfer of control of the company. The mortgaged shares will be sold for NIS 1.248 billion cash. If the non-mortgaged shares are eventually sold, the consideration will grow to NIS 1.37 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 24, 2019
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