More than 99% of Egged's 1,315 shareholders have approved the sale of a 60% stake in the bus company to the Israeli infrastructure investment fund Keystone Fund (TASE: KSTN).
Under the terms of the deal, the Keystone Fund and the partners it will recruit will pay NIS 2.8 billion for the 60% stake at a company valuation of NIS 4.77 billion. Each Egged shareholder will receive a payment of NIS 2.1 million, before tax. Keystone Fund will off Egged shareholders the opportunity to buy futures options that will allow them to sell the shares in the future for NIS 3.6 million before tax. This sounds like an option that will be difficult for Egged shareholders to refuse.
Keystone Fund will call a Zoom meeting of shareholders to approve the acquisition. The REIT fund is managed by CEO Navot Bar and led by cofounder and chairman Roni Biram and cofounder Dr. Gil Deutsch. Persuading Egged's shareholders to sell to the fund has been a major coup.
Keystone Fund will need to receive regulatory approval, which should not be a problem. At the same time Keystone Fund is in talks with several bodies to join it as a partner in the acquisition of the controlling stake in Egged.
Keystone Fund's share price has fallen 15% since the start of 2022 due to investor concerns that shares will be diluted if the fund has to raise money.
Published by Globes, Israel business news - en.globes.co.il - on June 1, 2022.
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