Only nine months after he acquired control of Brack Capital Properties NV from Shimon Weintraub and Ronen Peled, Teddy Sagi leaves the company at a tremendous profit.
Sagi sold his shares in the company to the German company Adler Real Estate. The company signed an agreement to acquire 41.04% of the shares of Brack Capital NV held by Teddy Sagi at a price of NIS 440 per share, representing a 12.5% premium on the current share price (NIS 391.8 per share).
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Sagi sold its shares for NIS 1.4 billion and is expected to post a profit of NIS 300 million in the deal. The Israeli billionaire acquired control of Brack in May 2017 and since then the share has risen by 14% (purchase price of NIS 345 per share)
In addition to Sagi’s shares, Adler also announced its intention to publish a tender offer for the purchase of up to 25.8% of the additional shares at the price of the transaction (NIS 440 per share). The joint CEOs of Brack NV, Gal Tenenbaum, and Ofir Rahamim are committed to selling their shares, so that Adler is expected to hold 70% of the company’s shares.
According to Adler’s announcement, the agreement is conditional on it acquiring at least 5% of Brack’s shares through a special tender offer.
In the tender, Adler intends to offer all the shareholders the benefit of the controlling interest of Teddy Sagi and to receive the price proposed in the purchase agreement, ie NIS 440 per share.
According to its announcement on the Frankfurt Stock Exchange, Adler will publish its tender offer on Sunday. The closing of the acquisition and the special tender offer will be conditional upon the approval of a merger by the German Federal Cartel Office.
Brack’s top management – Ophir Rahamim, Gal Tenenbaum and Fred Genia – undertook to offer their entire holdings (5.63%) for sale.
Adler undertook to purchase the balance of these shares if they were not purchased in the framework of the special tender offer. On the basis of these agreements, Adler intends to acquire 70% of the shares in Brackn-V.
Adler real estate is one of the five largest real estate companies in Germany and focuses on the development of residential real estate in metropolitan areas throughout Germany. This strategy creates a situation in which almost half of the company’s rental income comes from its properties in Germany, the 10 cities in which it is most active. The 20 cities in which the most active company generates about two-thirds of its total income.
The company has over 50 thousand housing units under management.
Gal Tannenbaum said: “Tenenbaum said, “The fruitful cooperation with Teddy Sagi, who has widespread business connections and great financial capabilities, generated large added value for all of Brack Capital’s shareholders. The deal with Adler is great for all the shareholders, who will receive a large premium on the equity and share price amounting to an effective control premium. Those who choose to retain their shares will benefit from the enhanced value that Adler’s management, with which we have been familiar for many years, will create by utilizing synergy and economies of scale.”