Israel Canada-Acron Real Estate Deal Faces Delay

The acquisition of Acron Real Estate by Israel Canada, led by Barak Rosen and Assi Tochmeir, is nearing completion but is not expected to finalize this week, despite the original deadline of Thursday, September 10th. Both companies are reportedly committed to the deal and anticipate an extension, with a new potential completion date set for February 2027. However, company sources suggest the deal will likely be concluded by the end of 2026.

The original agreement valued Acron Real Estate at 3.1 billion shekels, with payment structured as 60% stock and 40% cash, estimated at 1.24 billion shekels. Since the announcement, both companies' stock values have declined. Israel Canada's stock has fallen by over a third, and Acron's by 20%, reducing its value to 2.6 billion shekels. This drop may decrease the cash component of the deal by approximately 200 million shekels. Despite these market shifts, sources close to the companies insist the deal's terms remain unchanged.

Israel Canada plans to finance the cash portion using its own funds (547 million shekels in cash and cash equivalents), bank financing, asset sales, or debt issuance to maintain its current level of bonds. The company also projected asset sales or partner investments totaling around 600 million shekels over the next two years and noted available, unused credit lines of 470 million shekels with Acron.

All necessary conditions for the merger have been met, including approvals from shareholder meetings, the Competition Authority, and the Tax Authority. The Tax Authority confirmed that Acron's owners will be taxed on Israel Canada shares only upon sale, not allocation. Bank approvals were secured in early August. Acron has agreed not to engage in unusual business activities or distribute dividends before the merger's completion, while Israel Canada is permitted to distribute up to 25 million shekels.