Aspen Group acquires 50% of Siam pie – the capital market

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Acquires 50% of the holdings in the entrepreneur’s pie company Siam Shlomo Dahuki In exchange for NIS 405 million and will work to issue it. As part of the deal, Dahuki will become a stakeholder in the buyer, when he buys 5% of its shares for NIS 37 million, a consideration that reflects a price of 11.68 per share – a premium of more than 80% on the base price this morning.

Against the background of the deal, Aspen shares are up about 4.5%. This is after the share value fell by about 21% from the beginning of the year until yesterday. As a result, Aspen’s market value shrank to NIS 400 million.

The consideration for the transaction will be paid in stages: NIS 220 million will be paid in cash by the time the transaction is completed, and most of the balance will be paid by the end of next year. The last part of the consideration will be paid in cash or by transfer of real estate by the middle of 2022 (30.6.2022). The parties agreed that they would work to issue the Siam pie and inject an additional amount into the company’s coffers close to its issuance – if this materializes.

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Following the transaction, Pai Siam’s equity will amount to approximately NIS 800 million. For Aspen Group, this is a strategic deal to expand its activities in the field of hotels in Israel. Aspen Group operates in Israel in the Netherlands and Germany mainly in the acquisition, initiation, rental, management and improvement of income-producing properties such as offices, services, trade and industrial and logistics buildings, while Pai Siam owns income-producing hotels, hotels under construction, sheltered housing and land in demand areas in Tel Aviv and Jerusalem.

The total assets of Pai Siam, as of September 30, 2020, amount to approximately NIS 1.2 billion. Aspen Group ended the third quarter of the year with revenues of NIS 46 million and a net profit attributable to shareholders of NIS 26.1 million.

“We anticipate that in the face of the signing of the peace agreements, the hotel sector will return to prosperity and prosperity, thus leading to an improvement in the assets,” she said. Scout Harel, CEO of Aspen Group. “In addition, entering the fields of hotels and sheltered housing and expanding Aspen’s operations in Israel will allow Aspen to diversify its asset portfolio and diversify its business risks.”

Shlomo Dahuki, message: “The connection between the parties and the capital raised as part of the transaction will enable Pai Siam to make a significant leap in its activity and accelerate its growth in the coming years. At the same time, Aspen has quality assets with significant potential for improvement. The long one. ”