Elstein does not give up on DSK: Compare Mega Or’s proposal

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Eduardo Elstein does not relinquish control of DSK. The former controlling shareholder compared the proposal submitted by the group of investors led by the real estate company Mega Or. Elstein submitted to the receivers of the controlling shares in DSKS and to the IDB trustee an offer to purchase the shares (70.2%) in exchange for an amount of NIS 950 million, and attached a guarantee of NIS 95 million from Bank Leumi.

Following the comparison of Mega Or’s offer, the tender for the purchase of controlling shares in DSK will continue until November 4, and the parties will be given the opportunity to increase the consideration. At the end of the process, the conveners Are not obligated to sell to the person who submitted the highest bid.

It will be recalled that Mega Or, controlled by Tzachi Nachmias, conditioned its bid on the fact that any competing bid submitted would be required to add another NIS 40 million to this price, of which NIS 15 million would be transferred as compensation to Mega Or.

Elstein expressed his opposition to this agreement, and as a result the court ruled that the agreement between the receivers and Mega Or will enter into force on Tuesday – but Judge Hagai Brenner’s decision further states that if by that time Elstein (or any other investor) will submit an equivalent offer For that of Mega Or, together with a guarantee as provided by Mega Or, the court’s approval of the same agreement will be revoked.

Mega Or, it should be mentioned, submitted another offer to purchase another 12.1% of the shares of Discount Investments (DSK) from IDB trustee, Adv. Ofir Naor, in exchange for an amount of NIS 164.5 million. Elstein is not expected to compare this offer, which is conditional on the completion of the acquisition of the controlling shares.

IDB, the former controlling shareholder of DKS, became insolvent last month, due to a financial debt of NIS 1.96 billion, a lack of cash flows and a deficit of NIS 1 billion in equity and net asset value (NAV). IDB’s assets are: a lien on 82.3% of the shares of DKSH, 5% of the shares of Clal Insurance, 25.8% of the shares of the real estate company IDBG and 100% of the shares of Israir, as well as a holding in the gas and oil exploration partnership.

70.2% of Daskash’s shares, which are pledged in favor of IDB’s 14 bondholders, were appointed receivers, as well as the holding of 5% of Clal Insurance’s shares that are pledged in favor of Tu bondholders. The appointment of Adv. Naor as the company’s trustee has already managed to publish a tender for the sale of Israir, which is due to end on November 6.

About two weeks ago, the receivers for the controlling shares in DSK also issued a three-week tender for their sale. According to Judge Brenner’s decision, a bidder who does not have time to submit his bid today will be able to submit another bid by November 4.

The court has approved an auction

At the same time, the Trustee is enlightened in realizing IDB’s other assets that are not encumbered. As part of this, a court approval was obtained for a contract with the Tirosh auction house, to conduct an auction of 120 works of art (most of them pictures and paintings and a minority of sculptures) found in IDB’s former offices in Azrieli Towers in Tel Aviv.

This is not the first time that a collection of IDB artwork has been put up for sale. In 2014, following the company’s previous collapse (under the control of Nochi Dankner), the trustees sold dozens of works that occupied the offices in Azrieli (some of them from the Recanati family period) for a sum of NIS 3 million – in the upper range of the collection’s early valuations. The most expensive painting in the collection at the time was a painting by Yosef Zaritzky, which sold for $ 160,000.

Negotiations for the sale of the holdings are built for the Sultan

IDB holds approximately 19% of the participation units of the Modiin Gas and Oil Exploration Partnership, as well as 47.5% of the shares of the private company Noya, which controls (71.43%) the general partner of the partnership. The built-up control is shared by IDB with businessman Tzachi Sultan, who also owns 47.5% of Noya’s shares and 14.85% of Modi’in’s participation units.

According to Modiin’s report to the stock exchange, Sultan is negotiating with IDB to acquire its holdings in Noya. “The partnership was told that there is no certainty if and when the negotiations will be included in a binding agreement,” Modiin said in a statement. In response, Modiin’s participation unit jumped 28% on the stock exchange, to a price that reflects a value of NIS 42 million for the entire partnership.

Eduardo Elstein, who has already invested a huge sum of NIS 3 billion in IDB that went down the drain, is now only interested in the controlling shares (70.2%) in DSK, which controls the real estate company Properties and Building, the communications company Cellcom, the agricultural produce company Mehadrin and the company Investments in Elron Technology.





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