The sale to Clal Insurance provides Hagag Group with cash to complete the acquisition of Bazan.
Hagag Group Real Estate Entrepreneurship Ltd. (TASE: HGG), controlled by brothers Eido and Tsahi Hagag, is stocking up on cash, apparently in advance of completion of the deal it signed to buy control of Bazan (Oil Refineries in Haifa) from Israel Corporation (TASE: ILCO). Hagag has reported the sale to Clal Insurance (TASE: CLIS) of 75% of the land on which two commercial centers will be constructed on Einstein Street in the Ramat Aviv neighborhood in north Tel Aviv, for NIS 385 million (before VAT), or NIS 50,000 per square meter. Clal Insurance’s total investment in the project, including construction, will be NIS 475 million.
Clal Insurance already owns a functioning commercial center in Einstein Street together with Hagag Group. Hagag Group estimates that its gain on the current deal will be NIS 200 million.
Published by Globes, Israel business news - en.globes.co.il - on June 13, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
Eido and Yitzhak Hagag credit: Shay Tamir