A huge deal closed in the time of COVID-19 - Israel Discount Bank will provide a bank loan of NIS 380 million for the acquisition of Minrav Projects by Israel CanadaIsrael Canada is purchasing the company from Minrav at a value of NIS 574 million, a sum to be financed in the main by bank credit and the seller’s loan - After completion of the deal, the buyer can withdraw a dividend of NIS 200 million from Minrav
13.07.20 | Golan Hazani
Israel Canada and Rem Ltd. have wrapped up a deal for the purchase of Minrav Projects from Minrav Ltd., owned by Avraham Kosnitzky. Minrav Projects will be deleted from the stock exchange following the acquisition and will become a private company known as ICR.
The deal consists of a reverse triangular merger and the company is valued at NIS 574 million, slightly above its value on the stock exchange which is NIS 560 million. The acquisition will be funded by bank financing of NIS 380 million to be provided by Discount Bank, a seller’s loan of NIS 70 million and equity of just NIS 124 million brought by the buyers – Israel Canada, owned by Barak Rosen and Asi Tuchmeir, and REM owned by Oded Raz and the Nakash Brothers. Oded will serve as co-chairman together with Barak Rosen.
Israel Canada will be eligible to withdraw a dividend of NIS 200 million from Minrav Projects, which is engaged in the field of residential development. The company intends to complete Minrav’s projects already in execution, sell the existing inventory and invest in other projects. Barak Rosen will be appointed as chairman of Minrav Projects.
Minrav will record capital gains of NIS 40 million in a deal signed in December, but whose completion was delayed due to the COVID-19 Pandemic.
Following the deal, Minrav owner, Avraham Kosnitzky said: “This is a deal that has yielded us significant capital gains, cash flow and has greatly reduced the leveraging of Minrav. Consequently, the deal greatly strengthens the company’s resilience and financial flexibility, which even previously had enjoyed a high level of fluidity.
Subsequently, we will continue to work as part of Minrav Holdings Ltd. to develop the Group’s core activity fields, including focused development of residential construction and to benefit from Minrav’s strong brand in these markets, while taking advantage of opportunities that may be brought about during this challenging period .”
ICR Ltd.’s CEO will be Mordy Shabbat, who during the past two years served as Castro Ltd.’s general manager in the U.S. and previously managed the Gindi Group.
Shimonov & Co. and Goldfarb Seligman & Co. Law Firms will represent the buyers in this deal, S. Horowitz Law firm will represent Minrav and Adv. Assaf Englard and Ori Shasho of Hamburger, Evron & Co. will represent Discount Bank.