Israel Securities Authority investigators today raided the offices of Boymelgreen Capital Ltd. (TASE:BMGN) and its subsidiary Azorim Investment, Development and Construction Ltd. (TASE: AZRM). The companies handed over to the investigators various documents. Executives of both companies were questioned.
In a notice to the TASE, the companies said that, to the best of their knowledge, the Securities Authority is investigating suspected violations of the Securities Law (5728-1968).
Boymelgreen Capital, controlled by Shaya Boymelgreen, owns 64% of Azorim. Azorim, run by CEO David Netzer, is a developer in one of Israel's hottest markets: residential properties. Despite this, the company is financially troubled and reports heavy losses each quarter.
Azorim is up for sale and the names of several prominent businessmen have been mentioned as possible buyers. In late October, "Globes" reported that Success Parking Ltd. owner Tsahi Merkur has joined the list of parties seeking to acquire the company, alongside Yakir Sha'ashua and Pangaea Real Estate Ltd. (TASE:PNGD).
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2010
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