Sources inform "Globes" that businessman Nissan Khakshouri is in advanced negotiations to sell his 50% stake in the Club Hotel group to Leon Charney of the US for $150 million.
Moshe Boblil owns the other half of Club Hotel, and has actual control of it. Khakshouri and Boblil have been conducting a legal battle against each other for the past two and a half years, and have employed the top lawyers for the purpose.
Khakshouri and Charney recently signed a memorandum in New York, following negotiations in recent months. The deal is still subject to due diligence by the buyer, and to Moshe Boblil’s first refusal rights. Sources close to the dispute say that Boblil is likely to try to prevent the sale to Charney, which, if successful, would undermine his control of Club Hotel.
Club Hotel is one of the largest and most profitable private hotel groups in Israel. The group indirectly controls 30% of the shares in the flourishing casino in Loutraki, Greece, and the Club Hotel’s chain in Israel, which has two hotels: one in Eilat and the other in Tiberias. The Khakshouri-Charney deal reflects a $300 million value for Club Hotel, less than previous estimates.
Charney is active in real estate and investment banking, and his personal fortune is estimated at $1 billion. He began his professional career as a lawyer in a firm that represented athletes and entertainment industry figures.
Charney entered politics when he was 36, and was advisor to President Jimmy Carter in 1976-1980.
The bitter struggle between Khakshouri and Boblil was partly settled in August 2004.
Club Hotel sources said in response, “At the moment, only a rumor is involved, not serious consideration, and certainly not an offer. If a real offer is made, it will be considered on its merits. Under the court-approved agreement, Boblil has both first refusal rights, and the right to join a sale with all his rights. Meanwhile, the offer is only in the press, in line with the way Khakshouri has behaved up until now. This is an artificial attempt to create the false impression that a deal is in prospect.”
Published by Globes [online] - www.globes.co.il - on May 3, 2005