December 25, 2021

Giant transaction signed: Frenkel sells his holdings in Gav Yam to PBC for NIS 3.1 billion

Aharon Frenkel signs the transaction to sell 37.2% of Gav Yam and will record NIS 1.15-billion profit and 100% return within one year and a half. PBC, controlled by DIC, which is owned by Tzachi Nachmias, the Salkind brothers, and Rami Levy, will now increase to 82% holding

A giant transaction in the field of income-producing real estate: one year and a half after entering it for the first time, businessman Aharon Frenkel sold all his holdings in income-producing real estate company, Gav Yam, this evening (Saturday) to PBC. Frenkel sells all his shares, which constitute 37.2% of Gav Yam shares, which he holds through his private company, Equity Finance, for NIS 3.1 billion. PBC currently holds 44.5% of Gav Yam shares and after the transaction is completed, it will have an increased holding of 81.7%.

The transaction is made at a price of NIS 39 per share, slightly over the share price on the market, which is NIS 38.3 NIS. Together with NIS 80 million in dividends he will receive in the coming months, as part of the transaction, the price per share is NIS 40.5, 5% over the market price.

Gav Yam Negev Project (Mittelberg Diego)

This brings to an end a struggle for control, which has taken place at Gav Yam between Frenkel and PBC, which is under the control of DIC, held by Mega Or, controlled by Tzachi Nachmias, Elco, which is controlled by the Salkind brothers and Rami Levy. Despite the struggle for control, the separation between the parties is done in a positive spirit. In order to acquire the shares, PBC has sold properties worth more than USD 1 billion, which include the sale of the HSBC building in New York, a property in Tel Aviv and Beit Av-Gad in Ramat Gan.

Frenkel parted ways with Gav Yam in a phenomenal way, with a profit of NIS 1.15 billion. Over the past 18 months, he has invested NIS 1.15 billion of his capital in acquiring the shares, received financing of another 1 NIS billion from Harel, and now receives NIS 3.1 billion. That is, a return of 100%. Such a large profit in such a short time is not remembered in the Israeli capital market. Dividends he has received during this period at a total of NIS 60 million should be added to this profit. Frenkel received ten-year financing for the acquisition indicating an original intention for a long-term holding of the shares.

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