Naty Saidoff is buying control of real estate and infrastructures group Shikun & Binui Holdings Ltd. (TASE: SKBN) from Shari Arison. Saidoff and Arison agreed today on a deal for the purchase of Arison's 47% stake in the company for NIS 1.1 billion. Shikun & Binui's market cap is NIS 2.7 billion, which means that Arison is in effect selling her holding at a 15% discount on the market price.
Saidoff, an Israeli who made his wealth from real estate and financial dealings in the US, has for the past two years been looking for substantial business activity in Israel. Among other things, Saidoff tried to take over Jerusalem Economy Ltd. (TASE:ECJM) (JEC) through an offer to purchase, and conducted negotiations to buy Africa-Israel Investments Ltd. (TASE:AFIL). After that attempt failed, Saidoff was in talks to buy Eurocom from its creditor banks, but withdrew and is now battling for a refund of the NIS 50 million he deposited with a trustee against cancelation of the deal.
In the past year, Shikun & Binui's share price has fallen by nearly 30%, among other things because of an investigation into alleged bribery by senior managers of subsidiary SBI in Africa, in connection with which managers of the company were arrested. Shikun & Binui had to deposit NIS 250 million to release accounts of SBI and enable to continue in business.
Two weeks ago, Shikun & Binui reported that it was examining a sale of its holding in SBI, which is responsible for its infrastructure activity in Africa and Latin America, and which in the past was the group's main generator of profits, although it has recently become a burden.
Published by Globes [online], Israel business news - www.globes-online.com - on June 13, 2018
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