Yitzhak Tshuva sells Elad Residences to Israel Canada

Yitzhak Tshuva Photo: Tamar Matsafi

Tshuva has been required by the banks to sell privately held assets to boost collateral against his debt.

Yitzhak Tshuva has begun realizing privately held assets. After a fall of more than 50% in the share price of Delek Group Ltd. (TASE: DLEKG), reducing the value of Tshuva's holding in the company to less than NIS 1 billion, he has been required by the banks to start selling assets in order to raise collateral.

It was reported today that Tshuva has signed a binding memorandum of understandings concerning the sale of 70.7% (conferring 73.88% of the voting rights) of Elad Israel Residences (Elad Yisrael Megurim Hahadashah) which he owns to Israel Canada for NIS 205 million.

The deal values the company at NIS 290 million, and includes call and put options for the parties, the exercise of one of which will lead to the sale of Tshuva's remaining holding, such that Israel Canada will own 95.7% of the shares in Elad Israel Residences and 100% of the voting rights.

Israel Canada, controlled by Barak Rosen and Asaf Tuchmair, is active in residential real estate in Israel and has a market cap on the Tel Aviv Stock Exchange of NIS 1.4 billion after the recent spate of falls on the stock market. Elad Israel Residences also deals in residential real estate in Israel.

Elad Israel Residences recently filed a prospectus to raise some NIS 100 million in an initial public bond offering, but the steep falls in the bond market, particularly in companies controlled by Tshuva, make it doubtful whether the company can complete the offering.

As far as is known, Tshuva has personal debt of at least NIS 1.5 billion.

Published by Globes, Israel business news - en.globes.co.il - on March 11, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Yitzhak Tshuva Photo: Tamar Matsafi
Yitzhak Tshuva Photo: Tamar Matsafi
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