Today, B. Gaon Holdings Ltd. (TASE: GAON) subsidiary Middle East Tube Ltd. (METCO) (TASE: TUBE), reported signing an agreement to sell its rights in a plot near Tzrifin to an undisclosed third party for NIS 386 million. The company estimated that this major deal will yield a capital gain of NIS 300 million, before taxes. Sources told "Globes" that the buyer is George Horesh.
The deal consists of a 180 dunam plot (about 45 acres) at the Nir Zvi Industrial Zone near Ramle, known as part of the 'Tzrifin complex', where the Middle East Tube Company factory operates. The company announced that it intends to lease the sold plot for a period of up to five years, and is at the same time examining the possibility of building an advanced, innovative steel plant in southern Israel,
After this announcement, the company's shares soared more than 70%, and it is traded at a market cap NIS 310 million. Since the start of the year, the company's share has jumped 17%.
Gaon Holdings and Middle East Tube Company CEO Guy Regev, says "We are pleased about the signing of this deal, which matches the group's strategy, announced as early as 2014, to focus operations on the water and fluid infrastructure field and sell owned real estate and non-core holdings. This deal is a key benchmark in realizing this strategy, as part of which, in 2016, we also sold our holdings in Ahava and Peanuts and Cotton Marketing, as well as the Middle East Tube Acre plant real estate."
Regev added, "In parallel, we intend to examine the construction of an advanced and innovative pipe plant in a National Priority Zone in southern Israel. In addition, it is important to say that we consider Middle East Tube human resources to be one of the keystones for the success of the company's operations."
Three years ago, the Viola Growth fund, led by Harel Beit-On, acquired control of Gaon Holdings.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2016
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