The equity offering by Jerusalem Economy Ltd. (TASE:ECJM) (JEC) attarceted demand of over NIS 1 billion. The price was set at NIS 5.91 per share, which compares with a price in the institutional stage of the offering of NIS 4.70. Because of the high demand, the company expanded the offering to NIS 750 million.
"Some force has entered the company to take it over," a source close to the offering told "Globes", meaning that Shlomo Nehama has been left out of the deal and someone else has acquired control of the company. The people in question are Zohar Levy, who controls Summit Real Estate Holdings Ltd. (TASE: SMT) and David Fuhrer, chairman of pharmaceuticals distributor Neopharm, with the former buying 16.5-18.5% of the company and the latter 10%.
Shlomo Nehama had signed an agreement to buy control of JEC from Bank Leumi (TASE: LUMI), but the agreement was subject to buying NIS 150 million worth of shares in the offering, and in the course of the day yesterday rival bidders offered substantially more than the other applicants for the shares.
JEC sought to raise NIS 600 million. The institutional stage of the offering ensured demand of NIS 480 million at a price of NIS 4.70 per share, but, under the terms of the offering, a higher price at the public stage puts the institutions out of the picture, and the price at that stage of NIS 5.91 was substantially higher than the institutions' limit. Control of JEC has thus been stolen from under Nehama's nose.
The offering was led by Leumi Partners of the Bank Leumi group, the creditor of the previous controlling shareholder in JEC, Eliezer Fishman.
Eliezer Fishman is the controlling shareholder in "Globes".
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2016
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