Real estate giants Israel Canada, Nakash brothers acquire Minrav Projects
The deal is reportedly worth NIS 574 million, NIS 2.505 million above the Minrav Projects' market cap (NIS 571.495 million), based-off numbers provided by Bloomberg.
By ZACHARY KEYSERUpdated: JULY 20, 2020 16:47The skyline of Tel Aviv(photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)
Israeli real estate developer Israel Canada, in cooperation with the Nakash Brothers Group which owns the Herbert Samuels Hotel chain, bought out Minrav Projects – another one of Israel’s top real estate and construction companies – by acquiring the entirety of their shares recently, according to The Jerusalem Post’s sister publication Maariv.The deal is reportedly worth NIS 574 million, NIS 2.505m. above the Minrav Projects’ market cap (NIS 571.495m.), based-off numbers provided by Bloomberg.The Ashdod-based Minrav Projects became a publicly traded company on the Tel Aviv Stock Exchange just four years ago, as of press time it currently trades at NIS 645.20 per share.However, Minrav Projects will be delisted, and put in its place will be Israel Canada Rem (ICR). The company will be managed by Mordi Shabat, who was the former CEO of Castro clothing in the United States, as well as the former CEO of the Gindi Group, which develops and sells apartments in central Israel.“I am excited to embark today on a new path with a quality, young and dynamic company, which enjoys many years of experience and a strong financial backing from two highly reputable real estate giants in the market – Israel Canada and the Rem Group,” said Shabat. “The merged companies gives ICR its own added value in accordance with its areas of expertise and I believe that this winning combination will not only give great confidence to our existing and future buyers and tenants, but will make us a leading and groundbreaking factor in the Israeli real estate market.”According to a December Globes report, the shares of Minrav Projects are intended to be split and held equally between Israel Canada and Rem Projects, the latter being controlled by the Nakash brothers in conjunction with Israeli entrepreneur Oded Raz – with the two existing companies forming the namesake of the new, being ICR.Minrav Holdings, which holds 72% interest in Minrav Projects said in December that it intended to “undertake to vote in favor of approving the merger at the general shareholders’ meeting of Minrav Projects,” according to Globes – with the merger to be completed by January 2020. While negotiations presumably stalled due to the coronavirus pandemic, the three companies made good on their arrangement to seal the deal for the birth of ICR.
