The real estate company that yields amot goes out during a capital raising by issuing shares worth about NIS 400 million. This step may improve the company’s capital structure and increase its liquidity.
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As part of the offering, Aloni Hetz, the controlling shareholder in Amot, which holds 55.4% of its share capital, announced that it would participate in 80% of the offering and buy the shares at a price that is 7.2% higher than the minimum price at which they are offered to the public.
Amot plans to issue 27.5 million shares at a minimum price of NIS 14.45. This is a minimum raising of NIS 397.4 million. The minimum share price to be raised is the price at which it opens trading this morning on the stock exchange. The controlling shareholder, Aloni Hetz, undertook to buy 80%, a total of 22 million shares, at a share price of NIS 15.5 per share.
Following the issue, as long as Aloni Hetz fulfills its commitment to purchase 22 million shares in Amot and the issue is completed in full, Aloni Hetz will increase its holding rate of approximately 57% in Amot.
Amot shares have fallen 38.8% since the beginning of 2020, and are in 11th place in the decline in this time period among the shares of the Israel Stock Exchange’s real estate index. September was a negative month for the index – with Israel’s re-entry into a second close, the index completed until this morning. A fall of 11.5%. Since the launch of the index in February this year, it has fallen by 7.6% until this morning.
Amot is a rental real estate company specializing in the Israeli market. Its holdings are mainly office buildings, most of them in areas of demand. In the field of income-producing real estate, they have suffered more significant damage.
At the end of last August, Natan Hetz, the main shareholder and CEO of Aloni Hetz (14.52%), in a conference call with institutional investors in the capital market, estimated that the effects of the corona are limited and that in practice the impact of the crisis is much less than the concerns.
He said, “When the Corona event ends in half a year or a year and a half, a world as usual will act. It is an economic event and there will be a recession. In the short term there may be a drop in real estate prices. In the long run we will return to growth. Israel has grown with the largest growth rate in the Western world of 2% per year. All in all, at the moment, it’s not really like her scream. “
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