Big with an improved offer to take over Epic – Real Estate

If the purchase is made, Big will increase its holding by 70% in Effie Properties. The previous offer from mid-December was based on a price of 103.6 for Efi Properties and NIS 341 for Big, and included an exchange ratio of 0.32, or 0.31 according to the second option, which included an issue of 9 warrants.

Big and Mega Or took over Epic Properties as part of Africa’s debt settlement that held control of Africa Properties which changed its name to Effie Properties. Later, they increased their holdings so that in total they acquired about 44% of the company together at a value of about NIS 2.6 billion.

Big claims several benefits that the merger will bring to Epic: reducing exposure to Romania, which accounts for about 53% of Epic’s and Cotrosny Palace portfolio, which constitutes a significant asset (23% of revenues), targeting management by industries in the merged company, decentralizing operations (trade, offices, logistics) As well as focusing on the field of income-producing real estate while increasing the operating flow by improving, initiating and acquiring income-producing properties. Big also estimates that the merger will most likely lead to the merged company entering the Tel Aviv index and hence raising stock marketability.

Big also notes that the move will stabilize the credit ratings of the two companies, as Big is rated AA while Epi Properties is rated A. In addition, as one company, the two will improve their purchasing power, and Effie will be an upside partner in Big Contracts due to the entrepreneurial activity The massive of the company, so to their definition.

Big recently announced the sale of two U.S. real estate properties for a total of about $ 31 million. The company made a strategic decision to realize all of its operations in the United States, with the proceeds going to expand operations in the other geographic markets in which the company currently operates, including in the field of green energy and renewable energy. A profit of about NIS 100 million on the value of the property in the books (NIS 320 million).