The Tel Aviv Stock Exchange (TASE) is paving the way for investments by Hollywood. Several days ago, the TASE published for public comment a revision of the regulations concerning activity by cinema production partnerships. The revision allows them to raise money on the TASE not only in order to produce films in Israel, but also overseas.
This measure is being taken following an query to the TASE by several concerns. Among those expected to take advantage of this platform for raising money are brothers Moshe and Leon Edri, owners of United King (and Cinema City); Avraham Farhi; Hezi Bezalel; and Gideon Tadmor, until recentlya leading figure in the oil and gas exploration industry in Israel.
Tadmor, who led the Delek Group Ltd. (TASE: DLEKG) gas partnerships for many years, accumulating hundreds of millions of shekels in personal wealth in the process, is currently devoting his private activity to energy and the production of international films. He recently produced a Hollywood movie, "Norman," starring Richard Gere.
Tadmor, former chairman of Delek Drilling Limited Partnership (TASE: DEDR.L) and currently owner and chairman of private company Navitas Petroleum, is currently promoting a TASE IPO for Navitas, so the movie business is a side interest for him. Founded in 2013, Navitas held 14 oil and gas exploration licenses in the Gulf of Mexico off the coast of Texas and Louisiana as of the end of 2015.
Moshe Edri told "Globes" today, "I led the measure, together with a number of investors in this sector, in order to create an instrument for joint film production: co-productions with the US, Australia, Europe, etc. Production of films in an orderly process amounting to many millions of shekels is involved, so that investors will finally make money on the Israeli and international cinema. We already have experience."
As of now, the possibility of raising money from the public in the framework of a limiting partnership engaging in film production is limited to by the TASE Rules and Regulations to the production of Israeli movies. In addition, the possibility of raising capital from the public in a limited partnership framework was formerly allowed only for oil and gas exploration and the production of films in Israel. In recent years, this was extended to investment in partnerships for overseas oil and gas exploration.
The new proposed regulations for the TASE also include a regulation stating that investment in such a limited partnership will only be allowed as long as a film has not yet been completed and there is a ready copy of it, while an investment in a non-Israeli movie will be allowed only with the approval of a general meeting.
Up until now, only one limited partnership for film production has held an offering on the TASE - Cinema Trusts Investments in Movies, which was unsuccessful, ran out of money, and is currently listed on the preservation list at a zero value.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 25, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017