Ashtrom Group wants to delist Ashtrom Properties from the stock exchange


The Ashtrom Group publishes a takeover bid for the purpose of delisting Ashtrom Properties from the stock exchange, after its share has fallen by 40% since the beginning of the year. It seems that Ashtrom Properties’ significant exposure to income-producing real estate, including in Germany and England, which was in the background for cutting the company’s value in half in less than 10 months, is among the factors in the move. Ashtrom Properties was traded at NIS 2 billion in December 2019 Opened the trade at a value of just over a billion shekels.

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Ashtrom Group holds 54.34% of the share capital of Ashtrom Properties. It offers to buy the remaining 45.66% of the public’s share, or 47.1 million shares, by granting shares that the Ashtrom Group will issue itself. For each share of Ashtrom Properties, the public will receive 0.3441 shares of the Ashtrom Group. The closing price of the Ashtrom Group’s share yesterday (29/9) was NIS 42.05. Therefore, if we include the relative share of the Ashtrom Group share (0.3441 shares), which will be paid to each of the Ashtrom Properties shareholders, it appears that the offer price is 14.93% higher than the price at which the Ashtrom Properties share closed yesterday.

Yaron Rockman, CEO of Ashtrom Properties Photo: Israel Hadari

Since each investor who accepts the offer will actually receive a share of the Ashtrom Group, this is a dynamic and more complex situation to understand than a cash payment scenario for each share. It seems that investors are already “talking” through trading screens. The Ashtrom Properties share is responding with a 17.5% jump in the stock market now, while the Ashtrom Group share is down 4.6%.

The offer will be coordinated by Bank Mizrahi Tefahot and the last acceptance date for the purchase offer is Thursday in two weeks (15/10). It should be noted that among the prominent shareholders in Ashtrom Properties is one major institutional entity, Clal Insurance, which holds 11.54% of the company’s share capital. Clal Insurance’s decision will have a significant impact on the success of the move.

Ashtrom Properties owns properties in the field of income-producing real estate in Israel and abroad, mainly in Germany and England. The company, managed by Yaron Rockman, has active activity in the income-producing real estate market. The company also has significant projects in Israel, including the LYFE office building project located in Bnei Brak. NIS million in the corresponding quarter last year, net profit decreased by 16% and amounted to NIS 26.9 million in the quarter.

But the company suffered the most from the corona in the first quarter of this year, when it recorded a decrease in real estate investment value of NIS 10.1 million, compared with an increase in this item of NIS 29 million in the corresponding period. Only NIS 7.2 million.

The Ashtrom Group stated: “The proposed move will improve the operational flexibility of the two companies, and increase the synergy between them. “A 35 of the Tel Aviv Stock Exchange.”

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