Summit Real Estate Holdings Ltd. (TASE:SMT) has built a 7% stake in Israeli energy and retail company Paz Oil Company Ltd. (TASE:PZOL). As a result Paz's share price has risen 14% over the trading sessions on Thursday and today.
Income producing real estate company Summit, controlled by chairman Zohar Levy, reported that it holds a 4% stake in Paz, which is worth NIS 290 million, and has become a party of interest in the company. Summit also reported that it holds financial derivatives for addition Paz shares, representing 2.69% of equity.
Paz has no controlling core, so any investment in a substantial stake in the company raises the prospect of a takeover attempt. Nevertheless, market sources believe that Levy has no plans to take control of Paz and that Summit's move is purely financial.
Summit has income-producing property in Israel, Germany and the US and is traded on the TASE with a market cap of NIS 5.1 billion, after its shares rose in price by 121% over the past three years.
In 2016, Summit sought to take control of the Jerusalem Economic Corp. after controlling shareholder Eliezer Fishman declared bankruptcy. Although unsuccessful in its attempts to wrest control of the company, Summit saw 90% returns on its investment of NIS 300 million.
Published by Globes, Israel business news - en.globes.co.il - on January 9, 2022.
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