Former Deputy Minister Michael Ratzon issues bonds on the stock exchange and raises his salary

Knesset member and former Deputy Minister Michael Ratzon makes his way to the Tel Aviv Stock Exchange, by issuing bonds that he promotes to the real estate company Av-Gad Holdings, which he founded, and in which he serves as chairman.

Ahead of the planned raising, with an expected amount of up to NIS 60 million and an annual shekel interest rate of up to 6%, Av-Gad published a prospectus and presentation with the company’s activities, which show that it deals with two areas – initiating and building projects by urban renewal in the Sharon and Central region. Construction in some of its projects and in projects with partners. Av-Gad began its activities in 2008 and currently has about 210 apartments under construction or in preparation for construction, out of about 2,700 apartments under construction and planning, after so far it has delivered about 520 apartments in 10 completed projects.

Av-Gad uses the issue money mainly to provide equity in some of its projects, as well as to repay existing loans, and to raise debt on the stock exchange, offering collateral and liens on some of the projects.

The details published by Av-Gad also show that its revenues for the first half of 2020 jumped by 70% to NIS 42 million, after at the end of 2019 it acquired a company with several projects (which jumped its profits in 2019 thanks to an opportunity profit it recorded). Av-Gad’s gross profit in the first half of 2020 eroded, its expenses increased and it made a loss of about NIS 1 million, after a net profit of less than NIS 2 million in the corresponding period in 2019.

In the first half of the year, Av-Gad had NIS 4.5 million in cash, and it presented current assets of NIS 70 million, compared with current liabilities of NIS 66 million. The equity stands at about NIS 25 million.

The two boys hold positions in the company

Michael Ratzon (68), previously served as an MK on behalf of the Likud and as Deputy Minister of Industry, Trade and Labor, and in the past also served as chairman of Nata. Av-Gad is the CEO of his son, Ram Ratzon, and prior to the IPO, the two significantly upgraded their terms of employment, with an increase in the monthly salary of Ratzon from NIS 54,000 to NIS 90,000 and a doubling of the monthly salary of Ratzon’s son, from NIS 23,000. To NIS 45,000, in addition to an annual grant derived from Av-Gad’s profits and other benefits. The salary of Oded Ratzon, also the son of Michael Ratzon, who serves as the company’s engineer, was upgraded by 60%, from NIS 25,000 to NIS 40,000 a month.

Also in the Ratzon family, Av-Gad receives legal services from Adv. Netzchia LeBenda, Michael Ratzon’s cousin, for between 0.9% and 2% of the value of the company’s projects, and in the sum of the previous two years (2019-2018), the benefits for her together amounted to approx. NIS 1.8 million.