Billionaire Bob Stark to buy Africa Israel for $608 Million

Bob Stark real estate company Stark Enterprises has submitted an offer to buy Africa Israel, which gives Africa a value of NIS 2.2 billion ($608 million),

A surprising development in the saga of the sale of Africa Israel. Over the weekend, the company received a new offer. Calcalist has learned that the offer was filed by Stark Enterprises of Cleveland. The owner, Robert (Bob) Stark, is a religious Jew whose assets are estimated at $ 3-4 billion and is considered one of the largest entrepreneurs in Ohio, USA. Stark is recognized as one of the largest donors to Bar-Ilan University, Faculty of Medicine in Safed.

Stark’s proposal gives Africa Israel a value of NIS 2.2-2.25 billion, similar to that offered by the brothers Nati and Ofer Seidoff. However, it includes a cash component of NIS 600 million ($166 million), compared with NIS 500 million ($138 million) offered by the brothers. On the other hand, while the brothers are willing to buy the company without due diligence, which they conducted in the past month informally, Stark sets conditions, including due diligence. Therefore, the process is expected to be extended by at least a month or two.

Last week, the Seidov brothers’ exclusivity ended after their team remained the only one in the race for the purchase. Moti Ben-Moshe and current controlling shareholder Lev Leviev decided to retire. This is against the background of the demand by Psagot, a member of Africa’s bond representation, not to include Leviev in the group, which is a second debt arrangement for him, and Africa’s debt to bondholders is NIS 2.9 billion ($802 million).

The withdrawal of the negotiations with Syedoff brings additional factors to take an interest in the company. Calcalist has learned that an Eastern European investor who has previously had business relations with Lev Leviev may submit a non-binding offer to acquire Africa in the coming days.

American Larry Meisel is still negotiating for the acquisition.

This article was first published at Calcalist (in Hebrew)

Read more about: , , , , , ,

About the Author

Wordpress site Developed by Fixing WordPress Problems