Adler Real Estate succeeds in Brack Capital takeover

Teddy Sagi  photo: Yossi Cohen

Success in its offer to the public paves the way to completion of Adler's purchase of a controlling stake from Teddy Sagi.

Brack Capital Properties NV (TASE: BCNV) has come under the control of German company Adler Real Estate AG (ADL.F). Adler announced yesterday that it had received an almost 100% positive response to the partial offer to purchase it made for the shares of Brack Capital, and that consequently it will become the controlling shareholder, with a holding of 69.5%.

Last month, Adler signed an agreement to buy the controlling stake (41.4%) in Brack Capital Properties NV from Teddy Sagi at NIS 440 per share, or a total of NIS 1.4 billion. Sagi bought the shares less than a year ago for NIS 1.1 billion, so that he has made a rapid profit of some NIS 300 million.

At the time, completion of the transaction with Sagi was made conditional on Adler's success in buying between 5% and 25.8% of the public's holdings in the company in an offer to purchase at the same price. Yesterday, Adler reported that it had received positive responses from shareholders holding 51.3% of the company.

Following the high response, Adler will acquire the maximum quantity it offered to purchase (25.8%), with each shareholder who responded positively selling half of their holding. Under a previous commitment that Adler gave as part of the original transaction, it will buy the entire holdings of Brack Capital's co-CEOs Gal Tenenbaum and Ofir Rahamim, and will thus reach a holding of 69.5% at an investment of NIS 2.36 billion.

Adler Real Estate AG is one of Germany's leading income-producing real estate companies. It has market cap of €764 million, and owns more than 50,000 housing units for rent. Brack Capital is active in Germany in three main fields: rented housing units; rented commercial assets, and development and construction of residential neighborhoods. It has a portfolio of more than 12,000 rented housing units and some 317,000 square meters of commercial space for rent.

Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Teddy Sagi  photo: Yossi Cohen
Teddy Sagi photo: Yossi Cohen
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