Ofer Investments Ltd. are set to merge their two real estate companies, Melisron Ltd. (TASE: MLSR) and British-Israel Investments Ltd. (TASE: BRTS) through a share swap, after obtaining a draft valuation for the companies.
Under the terms of the pending deal, Melisron will acquire British Israel's public shares for 70% in cash and 30% in Melisron shares at a ratio of 16 British Israel shares for 3 Melisron shares. The shareholders will receive NIS 450 million and 8% of Melisron.
Melisron is offering NIS 13.10 per share for British Israel - 10% less than the acquisition price per share.
Melisron acquired 71.7% of British Israel from Leo Noe and Pujo Zabludowiczin May for NIS 1.7 billion, creating one of Israel's largest mall owners, rivaling Azrieli Group Ltd. (TASE: AZRG) and Gazit-Globe Ltd. (TASE: GLOB).
Melisron's share price fell 0.1% today to NIS 58.61, , and British Israel's share price rose 3.7% to NIS 12.98, Both company's market cap is NIS 2.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 22, 2011
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