Trea on the way to the stock market: merges with Luzon at a value of NIS 300 million – the capital market

After the private placement, the shareholders in Trea will hold Luzon shares, which will constitute 72.5% of Tria’s shares. The Company’s holdings at the time of completion will be diluted from approximately 70% to 19% of Luzon Real Estate’s issued and paid-up capital, based on Tria’s future revenues.

After the transaction, if the aggregate income is less than NIS 200 million, Tria’s shareholders will not be entitled to exercise any of the share rights allocated to them. If the aggregate income at the time of the examination is NIS 200 million and there is an average increase of 25% From year to year, the shareholders of Trea will be entitled to exercise 50% of the share rights allotted to them.

One of the suspending factors for the termination of the transaction is that Luzon will have equity of at least NIS 70 million. Another factor is the valuation of Trea, by an independent appraiser who attaches a price tag of at least NIS 300 million to the non-bank credit company. This is a value equal to that of Shoham Business and is less than half the value of Peninsula.

In addition, Luzon has pledged to end with its current operations, urban renewal and the Lugano project and its sale for NIS 70 million. Luzon’s market value is NIS 100 million.

As far as management is concerned, as long as the company holds more than 5% of the issued and paid-up share capital of Luzon Real Estate, it will be entitled to demand the appointment of Amos Luzon as a director of the company or the appointment of a director whose identity will be recommended by the company.

Non-bank credit companies were among the hottest companies on the stock exchange in 2019. The corona crisis has led to damage to the financial shares on the stock exchange and, in the process, to a material fall in the value of non-bank credit shares. With the resurgence in the last few months of the local stock market, these stocks have returned to show a positive return. The Tel Aviv Insurance Plus index, for example, has risen by 5.5% since the beginning of the year.