Sources inform “Globes” that Nissan Khakshouri, an owner of the Club Hotel chain, recently sold his stake in the Palace casino in Romania to his partners, Freddi Robinson and Yigal Zilka for $2.5 million.
Khakshouri owned 16% of the casino, located in a luxury building in downtown Bucharest. The sale reflects a company value of $15 million for the casino. Following the sale, Robinson and Zilka own 83% of the Palace casino, as a private investment.
The rest of the Palace casino is owned by Khakshouri's partner in Club Hotel, Moshe Boblil, with whom Khakshouri is battling for control of the company. Khakshouri reportedly sold his stake in the Palace casino, due to liquidity problems, which the struggle for control of Club Hotel has worsened. The proceeds will reportedly be used to repay bank debts.
The Palace casino was opened in the mid-1990s at the same time that Club Hotel, Robinson and Zilka opened another casino in Loutraki, Greece.
The Loutraki casino quickly became one of the most successful overseas ventures by Israeli developers, generating a profit of over €30 million a year. The casino is currently worth an estimated $700 million. The Palace casino is much smaller and therefore less profitable.
Khakshouri declined to comment on the report. Robinson and Zilka could not be reached.
Published by Globes [online] - www.globes.co.il - on August 3, 2004