Why did Alrov jump by 14%? – Capital Market

Stock

Alrov Real Estate
+ 13.88%

Base:12,540

opening:13,670

High:14,300

low:13,400

change:4,710,215

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Jumped 14% on the stock exchange today, after

Israel Canada
+ 1.97%

Base:926

opening:946

High:959.3

low:940.2

change:2,302,714

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Reported that it bought the holding (12.93%) of

All insurance business
+ 0.51%

Base:5,462

opening:5,462

High:5,510

low:5,410

change:8,478,604

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. But if so, why is she actually leaping?

The real significance of the move is probably the delisting of Alrov’s stock from the stock exchange and its becoming a private company, at least that is what investors believe.. why? As a result of the acquisition by no other institution, the amount of floating (public holdings in the share) decreased to about 8.33% of the company’s shares, and according to the rules of the Securities Authority – the company controlling Alrov, Akirov (78.74%), will have to apply under certain conditions. Purchase for public shares.

It’s not sharp and smooth – Alfred Akirov, the controlling owner, knows what the benefits are from the connection to the capital market – proximity to oxygen is welcomeWhat’s more, his team raises debt on a regular basis. One option is to simply delist from trading (not delisting through a takeover bid) which is a step that hurts shareholders, and another option is to dilute its holdings so that the public has more shares – this is to the extent that it wants to remain close to the capital market.

So it is likely that investors appreciate that we are towards a takeover bid and bought shares today. But another possibility is simply the assessment that Barak Rosen and Assi Tochmeir’s Israel Canada will be able to increase and perhaps even improve Alrov’s activities. Israel Canada acquired Clal Insurance’s holdings for NIS 382 million, ie a price of NIS 128 per share. According to the agreement, if within a year and a half (18 months) Israel Canada sells to Akirov some or all of the acquired shares at a price higher than NIS 128 per share, Israel Canada will pay Clal Insurance half the difference between the share price and this price, multiplied by the number of shares. 5% per annum), but not more than 2% of the transaction amount.

Akirov himself probably could not have purchased these shares because of the hot blood between him and Clal Insurance. The possibility that Rosen and Tochmeier will praise Alrov is unlikely, after all, Akirov is a veteran contractor and veteran businessman and it is hard to see him interested in attaching more entities to control. Perhaps simply, Barak Rosen are a kind of middlemen.