Shaya Boymelgreen’s firm and the Delek Real Estate unit negotiated for a year.
Sources inform ''Globes'' that Azorim Investment, Development and Construction Ltd. (TASE: AZRM), controlled by Shaya Boymelgreen, will not merge with Dankner Investments Ltd., a subsidiary of Delek Real Estate Ltd. (TASE: DLKR). The companies had conducted negotiations for a year.
Azorim had planned to acquire Dankner Investments in a stock swap at a company value of $100 million. The deal was called off in part because Azorim’s market cap has fallen. In addition, the merger would have significantly diluted the holding of Boymelgreen Capital Ltd. (TASE:BMGN) in Azorim.
Delek Real Estate is negotiating the sale of Dankner Investments to other parties. The most noteworthy interlocutors are Shikun Ovdim Ltd., Kardan NV (TASE: KRNV;AEX:KARD), and Ashdar Building Co. Ltd. (TASE:ASDR). Negotiations with Shikun Ovdim, controlled by Arison Holdings Ltd. through Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN), have been delayed because the company’s planned IPO has been postponed because of the capital market turmoil.
Published by Globes [online], Israel business news - www.globes.co.il - on August 27, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007