Lapidoth Capital also bids for Africa Israel

Jacob Luxenburg  photo: Tamar Matsafi

The new bid is the third, following bids by Gad Zeevi and Meir Shamir.

On the eve of meeting of Africa Israel Investments Ltd. (TASE:AFIL) bondholders to discuss the company's future, a bid to acquire the company was submitted today on behalf of Lapidoth Capital, controlled by Jacob Luxenburg. The new bid is the third offer to acquire Africa Israel, following bids by businessperson Gad Zeevi and Mivtach Shamir controlling shareholder Meir Shamir.

Like the two previous bids, Lapidoth Capital's bid is based on an overall debt arrangement for Africa Israel, in which the acquiring company will get 100% of Africa Israel's shares, while the shares of the existing owners, Lev Leviev and the public, will be invalidated (nullified and canceled). While Lapidoth Capital is offering the bondholders a package of proceeds similar to the packages offered by Mivtach Shamir and Zeevi, there are clear differences between the packages.

Lapidoth Capital's offer includes a NIS 280 million cash payment in two stages, plus all of Africa Israel's remaining cash, minus tax payments estimated at NIS 70 million and payments to advisors, trustees, and other debt arrangement expenses amounting to tens of millions of shekels.

Lapidoth Capital is also offering the bondholders an amount equivalent to their relative share of the estimated NIS 13 million in cash currently in the treasury of Savion Nurseries; 20% of Danya Cebus's shares in Africa-Israel Residences, worth NIS 200 million; 50% of Dany Cebus's cumulative net profit over six years, with a commitment to minimum of NIS 80 million; and part of the proceeds to be received from the sale of the company's land rights in Savion. As part of the latter proceeds, the bondholders will receive the full proceeds up to NIS 70 million and half of any proceeds in excess of NIS 70 million.

The Africa-Israel real estate group has been in a state of insolvency for three years. Since then, it has sold its activities in Russia and Eastern Europe and its activities in Israel in income-producing properties, hotels, and toll roads. Following the sale, Africa-Israel was left with the construction and infrastructure activity of its subsidiary, Danya Cebus, residential housing development activity of its sub-subsidiary Africa-Israel Residences, and land in the Savion area.

The sale of assets left Africa-Israel with a NIS 2.2 billion debt to holders of its Series 26 and Series 28 bonds, including interest and linkage. The bondholders will convene today to discuss the bids, and will vote in the coming days on which bid they prefer for negotiations with the bidder and signing a detailed debt arrangement.

Published by Globes, Israel business news - - on August 7, 2019

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

Jacob Luxenburg  photo: Tamar Matsafi
Jacob Luxenburg photo: Tamar Matsafi
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