Real estate company Israel Canada (TASE: ISCN) controlled by Barak Rosen and Asi Touchmair, has announced the signing of two non-binding memorandums of understanding (MoUs) to acquire the activities of Brown Hotels in Israel and Greece. At the same time talks are being held to merge Israel Canada's hotel activities into the DNA Group stock market shell, which is also controlled by Rosen and Touchmair.
Israel Canada Hotels, in which Israel Canada has a 68% stake, signed the MoUs to buy the Brown brand from Nir Waizman, Leon Avigad, Nitzan Perry and Hachshara Insurance.
In the first of the MoUs, Israel Canada Hotels will buy Brown Hotels activities in Greece for no payment and take on the lease agreements for the eight hotels with 1,067 rooms. In a similar way, Israel Canada is also taking on the leases for Brown Hotels in Tel Aviv and Jerusalem.
In addition, Israel Canada Hotels has signed an MoU to buy Brown Hotels activities in Israel. Israel Canada Hotels will pay NIS 100 million including NIS 27 million in cash and the rest by taking on debt. The deal includes 10 hotels with 779 rooms including furnishings and the Brown and Lighthouse brands, online activities and the loyalty club.
Expansion overseas
Israel Canada Hotels partner and CEO Reuven Elkes said, "The company's future strategy is to expand overseas and there is no doubt that the deal in practice can consolidate the management platform abroad.
Prior to the Brown Hotels deal, Israel Canada Hotels has 15 hotels - 12 in Israel and three in Greece. With hotels in Tel Aviv, Jerusalem, the Galilee and elsewhere, the company operates under the Play brand name and other brands. After the Brown Hotels deal is completed, Israel Canada Hotels will have hotels with 3,600 rooms.
Published by Globes, Israel business news - en.globes.co.il - on September 19, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.