Frenkel set to gain NIS 80m on Aeronautics sale

Aaron Frenkel Photo: Eli Etkin

Frenkel is set to make a 100% return on his investment within a few months.

If the deal for acquisition of Aeronautics Ltd. (TASE:ARCS) by Rafael Advanced Defense Systems Ltd. and Avichai Stolero goes through at a company value of NIS 850 million (NIS 15.64 per share), businessperson Aaron Frenkel will post an NIS 80 million profit in his investment in the company.

Frenkel, 61, whose main activity is in real estate and civil aviation, first invested in Aeronautics in late 2018 by acquiring The Phoenix Holdings Ltd.'s (TASE: PHOE1;PHOE5) 5.5% stake in the company at NIS 8.50 per share. The NIS 25 million value of the deal with Phoenix reflected a 25% premium on the market price at the time.

During and subsequent to the deal, Frenkel began buying shares in Aeronautics on the market. If the current deal goes through, Frenkel will sell his holdings in the company for NIS 170 million, a phenomenal return of almost 100% on his investment in the space of just a few months.

Frenkel was born in Bnei Brak and grew up in religiously observant family at the youngest of three brothers. He became wealthy as the representative of Western aircraft manufacturers Boeing and Airbus in Eastern Europe. He currently owns the Lloyd's group, which invests in real estate, civil aviation, energy, and high tech. In recent years, he has dealt mostly in Western European real estate, with an emphasis on the UK market.

Published by Globes, Israel business news - en.globes.co.il - on January 13, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Aaron Frenkel Photo: Eli Etkin
Aaron Frenkel Photo: Eli Etkin
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