Real estate company Israel Canada TR Ltd. (TASE: ISCN), controlled by CEO Barak Rosen, chairman Asaf Tuchmair, and Avraham Ben David Ohayon, is raising NIS 121 million in a private allocation of shares to Menorah Mivtachim, 10 other investors, and its controlling shareholders. The allocation will be at NIS 7.75 a share, a 7.5% discount on yesterday's closing price.
Israel Canada will allocate 1.1% of its capital to Menorah Mivtachim and an aggregate 3.5% to the 10 additional investors for NIS 90 million. 1.65% of the capital will be allocated to Rosen, Tuchmair, and Ohayon for NIS 31 million (NIS 5 million each from Rosen and Tuchmair and NIS 21 million from Ohayon) - a total allocation of 6.25%. Rosen and Tuchmair, who currently hold 23.5% each of the company's capital, will have 22.5% each after the allocation, while Oyahon's holding will fall from 21% to 20.7%.
Israel Canada constructs projects, develops and manages buyers' groups, deals in development real estate (investment in land) in Israel and Russia, and in income-producing real estate, and last February also founded a hotel company.
The company has been conducting deals at a breathtaking pace for quite some time. Since last summer, together with its partners, it has concluded and pushed forward projects totaling nearly NIS 1 billion. In recent years, Israel Canada has made a number of large deals, including the purchase of land for upgrading, such as the Pi Glilot site, the Elco site in Ramat Hasharon, the Kanarit-Da Vinci project, and the Lapid site on Eilat Street in Tel Aviv.
Israel Canada also completed important projects, such as the Midtown Project on Menachem Begin Street in Tel Aviv. The company is currently building Microsoft Israel's new 45,000-square meter office headquarters in Herzliya.
With support from the booming real estate sector in the past year, Israel Canada's share price has climbed 240% over the past year, bringing the company's market cap above the NIS 2 billion mark.
Israel Canada has continued its momentum in recent weeks. In mid-December, the company reported that it was in advanced negotiations to jointly acquire, with the Nakash brothers, Minrav Projects at a company valuation of NIS 550 million and delist it from the Tel Aviv Stock Exchange.
Israel Canada will acquire Minrav Projects through a special purpose vehicle to be founded for the purpose, which will be held in equal shares with private company Rem Projects held by the Nakash brothers and businessperson Oded Raz. The acquisition will be conducted through a reverse triangular merger. "The parties plan to complete the negotiations and contract a merger agreement in January 2020," Israel Canada said.
Published by Globes, Israel business news - en.globes.co.il - on January 9, 2020
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