Lev Leviev, controlling shareholder in Africa-Israel Investments Ltd. (TASE:AFIL), has taken another step towards completing the purchase of 65% of subsidiary AFI Development plc (LSE:<a href=Javascript:viewInstrument('AFID',1,'EN')>AFID</a>), which operates in Russia. On Friday, the Cyprus Securities and Exchange Commission authorized Leviev to acquire the controlling interest in AFI Development, even without publishing an offer to purchase under the same conditions to all of the company's shareholders, since no transfer of control will take place in the company.
<p>With the approval of the Cypriot regulator, all conditions have been met for completing the sale of the <a href="http://www.africa-israel.com/" target="new">Africa-Israel Investments Ltd.</a> (TASE:<a>AFIL</a>) stake in AFI Development for NIS 550 million. Africa-Israel said today that the deal would be completed during the next 36 days and that there were no further conditions preventing it from being completed.
<p>AFI Development is a Cypriot company with subsidiaries in Russia, and is therefore subject to Cypriot law, under which the sale of control of a public company requires the buyer to submit an offer, at the same price, to the minority shareholders. However, since Leviev, who controls Africa-Israel, is the one buying AFI Development from it, the Cypriot authority decided that in fact control over the company would not change and exempted him from this law.
<p>The sale of AFI Development to Leviev is the first step in the debt arrangement that Africa-Israel seeks with the company's creditors, bondholders in series 26-28, to whom the company owes NIS 3.29 billion. Completing the sale and transferring the money to the bondholders will reduce the debt to NIS 2.74 billion. However, without the holding in AFI Development, Africa-Israel will present assets totaling only NIS 2 billion against this debt, leading the company to request the creditors' approval to convert about NIS 1 billion of debt to equity, to enable it to continue existing as an independent company.
Meanwhile, Africa-Israel Properties Ltd., another Africa-Israel subsidiary, reported today that it had signed an agreement for the sale of 18 apartment buildings in Berlin for €125.5 million (about NIS 535 million). The sale followed a letter of intent which the company reported signing last month.
<p><em>Published by Globes [online], Israel business news - <a href=" http://www.globes-online.com ">www.globes-online.com</a> - on August 8, 2016</em></p> <p><em>© Copyright of Globes Publisher Itonut (1983) Ltd. 2016</em></p>