Income producing real estate company Gazit-Globe Ltd. (TASE: GZT) and its controlling shareholder Chaim Katzman are joining the trend and are setting up a non-active SPAC (special purpose acquisition company) to raise capital from the public for the purposes of acquiring a technology company in the fields of finance, real estate and retailing. The SPAC will raise $250 million, and will be headed by Zvi Gordon, Gazit-Globe's VP of development and Katzman's son-in-law.
Katzman said that thanks to Gazit Globe's presence in fourteen countries, it received many business proposals concerning fintech, proptech and retail tech. from companies wanting Gazit-Globe to invest in them or use their products at its properties. "We haven't invested in companies of this kind, because that is not what we do, but we have come to the conclusion that this pipeline has value and, and we intend to set up a $250 million SPAC for the shareholders in which investments such as this are very interesting, and we will examine investments in these fields on their behalf," Katzman wrote in a letter to Gazit Globe shareholders for 2020.
"The group headed by Zvi Gordon, our VP of development, will deal with the matter and will find suitable companies for this SPAC. For the sake of good order, I should mention that we intend to be the sponsor o fteh SPAC, that is to say, we shall form it and manage it, but we do not intend to invest beyond the issue costs, and if the SPAC succeeds in finding an investment that the shareholders approve, we shall be entitled to the receipt of 15-20% of the shares in the SPAC," Katzman continued.
Published by Globes, Israel business news - en.globes.co.il - on March 22, 2021
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