Business & Investment

Likely to sell shares in Elco, Mega or Cellcom and Elron

Elco Holdings Co., Ltd. (TASE: ELCO) Offer to buy 27% to 29.8% of the shares Discount Investment Corporation (TASE: DISIIn the case of 400 million NIS, controlling shareholders Daniel and Michael Salkind show the potential to see in realizing and strengthening the company’s assets. Discount Investment is a debt-bearing holding company that not only increases the risk of an investment, but also provides the opportunity to achieve a substantial return on the investment.

As of November 2020, the discounted investment had a financial commitment of 3.64 billion NIS and liquid assets equivalent to 1.91 billion NIS, reflecting a debt of 1.73 billion NIS.

The company’s assets have the potential to be strengthened.These include a 74% stake Property and Building Co., Ltd. (TASE: PTBL), 46% stake in telecommunications company Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), 61% of technology companies Elron Electric Industries Limited. (TASE: ELRN) And 44.5% of agricultural land companies Mehadrin Tnuport Export LP (TASE:MEDH).

These are valuable assets of over 2.77 billion NIS and have great potential for expansion. In the past, Megaor Chairman and Control Shareholder Zahi Namias, who led the purchase of control over discounted investments, talked about buyers’ intentions to reduce debt by striving to realize assets that are not related to real estate. Did. ..

In other words, selling Cellcom and Elron shares at a significant premium of market value could add hundreds of millions of shekels to the present value of the shares. In addition, Nahmias is a leveraged investment firm focused on the real estate sector, so we see great potential to strengthen Property & Building Co. (probably the Salkind brothers also want to participate in such deals. ).

Property & Building holds a 29.9% stake in a revenue-generating office company, equivalent to 1.57 billion NIS. Bayside Land Corp. Ltd. (Gav Yam) (TASE: BYSD1) And private sector businesses in the housing construction sector, including land still listed in acquisition costs. Property & Building also owns full ownership of the HSBC Building in New York, with a current value of $ 855 million (approximately $ 470 million minus a loan to finance the asset) and termination of arbitration. You can sell it later. The Schimmel family who mediated the acquisition.

Two other major assets owned by Property & Building are at various stages of sale.The first is a commercial center Ispro-Israel Properties Rental Corp. Ltd. (TASE: IPRO), Kidon Dahari and Liron Adiv will acquire it by the end of March. The second is Tivoli’s commercial and office project in Las Vegas, which will be sold depending on the state of the city’s real estate market.

Bayside investments and residential real estate activities now represent the growth potential of Property & Building while selling their holdings at Ispro, helping to reduce corporate bonds in Las Vegas and New York, and to grow the region. We support the source of that expansion. ..

Israeli Business News, Published by Gloves- en.globes.co.il -March 7, 2021

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Likely to sell shares in Elco, Mega or Cellcom and Elron

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