Yitzhak Tshuva signs MOU for sale of Elad Canada

Yithak Tshuva / Photo: Yossi Cohen

The sale is to US and Canadian investors, who will initially buy 37%, with the remaining 67% to be sold at the option of either side.

Delek Group Ltd. (TASE: DLEKG) controlling shareholder Yitzhak Tshuva, who in the past few months has been realizing privately held assets in order to repay bank debt, is selling 37% of Elad Group, which controls Elad Canada.

Elad Canada has two main areas of activity: real estate for investment, and the construction and sale of housing units. The investment real estate activity is made up of three sub-categories: business parks and offices in the US; offices and commercial properties in Canada; and housing for rent in the US.

Elad Canada reported this morning that it had signed a non-binding MOU with a group of investors that includes Canadian company Plaza Partners and US company Argent Ventures for the sale of 37% of its shares and 100% of its rights in its San Michelle and Colonnade at Sawgrass assets. The investors will pay Elad Group C$225 million (NIS 570 million). In addition, the buyers will have a call option and the sellers will have a put option on the remaining 63% of the company. The parties intend to sign a binding agreement within 30 days.

The buyers will pay a further C$ 100 million (NIS 253 million) conditional on expansion of the building rights and an increase in the profits of the Galleria and Lansing projects.

On completing the purchase of the 37% stake, the buyers will take over day-to-day running of the company.

Although Elad Group is a privately held company, it has reported to the Tel Aviv Stock Exchange since making a public bond offering in August 2018.

Published by Globes, Israel business news - en.globes.co.il - on July 5, 2020

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

Yithak Tshuva / Photo: Yossi Cohen
Yithak Tshuva / Photo: Yossi Cohen
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