Three years after the IPO on the Tel Aviv Stock Exchange by Minrav Projects, the company is now slated for acquisition and delisting. Israel Canada announced today that it was "conducting very advanced negotiations" for an agreement in which it would acquire all of the shares in Minrav Projects, together with brothers Joseph, Rafael, and Avi Nakash, for NIS 550 million, 5% more than the company's NIS 525 million market cap, as of today.
Israel Canada, controlled by chairman Assaf Tuchmeir and CEO Barak Rosen, will acquire Minrav Projects through a special purpose vehicle, to be held in equal shares by Israel Canada and private company Rem Projects, held by the Nakash brothers and businessperson Oded Raz. The acquisition will be conducted through a reverse triangular merger. Israel Canada said, "The parties plan to complete the negotiations and contract a merger agreement in January 2020."
As part of the proposed agreement, Minrav Holdings, which controls Minrav Projects with a 72% stake, said it "will undertake to vote in favor of approving the merger at the general shareholders' meeting of Minrav Projects." Minrav Holdings, which is controlled by chairperson Avraham Kuznitsky, will post an estimated NIS 50 million pre-tax capital gain on the sale.
Published by Globes, Israel business news - en.globes.co.il - on December 17, 2019
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