Property and Building Corp. Ltd. (TASE:PTBL) has signed an agreement to buy Aaron Frenkel's 37.2% stake in Bayside Land Corp. Ltd. (Gav Yam) (TASE:BYSD1) for NIS 3.1 billion. Frenkel will record a 100% return on his investment.
On Saturday night, representatives of Frenkel's signed an agreement with Discount Investment Corp.'s Property & Building as part of an public offer to purchase, in one of the biggest ever private deals in Israel's capital market. The deal is due to be completed by the end of April 2022.
Frenkel began building his stake in income producing property company Bayside in the first half of 2020, when global stock markets began falling sharply because of the outbreak of the Covid pandemic. Through purchases on and outside of the Tel Aviv Stock Exchange (TASE), he reached a 10% stake. He subsequently purchased another 25% in attempts to become the controlling shareholder in Bayside, vying with Property & Building, which held a 29.9% stake.
The latest deal is good for both parties with Frenkel recording a profit of NIS 1.25 billion on his investment, while Property & Building Corp's owners consolidate control of the company's most valuable asset.
Published by Globes, Israel business news - en.globes.co.il - on December 26, 2021.
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