BSR Engineering and Development Ltd. chairman Kalman Sufrin and president Nachshon Kivity are restructuring the real estate and development company. The company will offer stocks and bonds in a Tel Aviv Stock Exchange (TASE) IPO at a company value of NIS 300-350 million on the basis of its financial report for the first quarter of 2007. The company will reportedly file its prospectus with the Israel Securities Authority today. Sources inform ''Globes'' that DS Apex Holdings Ltd. (TASE:DSAP) will be the lead underwriter.
Two of BSR Engineering’s subsidiaries are already public: BSR Europe Ltd. (TASE:BSR) and BSR Projects Ltd. (TASE: BSRP). The decision to float the parent company is part of Sufrin and Kivity plan to go into business in Asia, with a focus on India and Vietnam. The prospectus states that BSR Europe undertakes to operate exclusively in Europe and BSR Projects exclusively in North America and Israel, Sufrin and Kivity decided to float the new business through BSR Engineering.
As part of the restructuring, Sufrin and Kivity are allocating 20% of BSR Engineering and Development’s share capital to former Amdocs co-founders and former executives Mario Segal and Haya and Nehemia Lemelbaum in exchange for 7% of BSR Projects and 8.4% of BSR Europe. The allocation was made at a company value of NIS 350 million for BSR Engineering.
When the IPO is completed, Sufrin and Kivity and Gibor Sport Holdings Ltd. (TASE: GISP), each of whom currently own a third of BSR Engineering, will see their stakes diluted to 26.7% each. BSR Engineering will hold 44% of BSR Europe, when the deal with Segal and Lemelbaum is completed.
Published by Globes [online], Israel business news - www.globes.co.il - on June 28, 2007
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