Structure will offer 1.05 shares for Sela Stock – Capital Market

The new proposal follows the condition set by District Judge Magen Altuvia in a hearing held last weekend to approve a move to take over a building on Sela Real Estate. Following a building’s response, a discussion on the new proposal is expected at the Sela shareholders’ meeting on Wednesday.

The offer gives Sela a value of NIS 1.73 million, and a premium of about 20% on the market price. Prior to the change, it set a ceiling structure of NIS 250 million on the cash alternative, so that beyond this amount it can only offer shares of a structure to Sela’s shareholders – even if they prefer the second option. Now if so, shareholders will be able to choose one of the two alternatives. In the previous offer, the exchange ratio between the shares was such that for each share of Sela Real Estate, 0.92 shares of a structure will be received.

Mivna’s CEO Dudu Zabida claims that Sela Real Estate’s performance, led by chairman Shmuel Selvin, falls short of those of Mivna, and that Sela’s shareholders are losing out – including Mivna itself. It is said that the occupancy rates in the assets of a structure are inferior to their own, and that the debt structure of Sela is better and even that the management fees are the lowest in the market.

To complete the takeover, a structure must obtain a 75% majority of the shareholders who are not defined as stakeholders in the company, these will indicate the proposal to revoke its status as a REIT fund, for all the tax benefits derived therefrom. This is another obstacle that a structure will need to overcome, as Altuvia stated that the definition of personal interest will be based on a 70% difference between the value of the holdings in a structure share and that of rock shares – similar to the original structure proposal, which it later sought to change.