Israel Canada-Acron Merger Deadline Extended to October 25

The significant merger deal between Israel Canada and Acron, initially slated for completion on September 10, has been postponed. Both companies announced that while most conditions have been met, regulatory approvals from the stock exchange for new shares and bonds, as well as from the Securities Authority and the Registrar of Companies, are still pending. Consequently, the parties have agreed to extend the deadline to October 25, with the merger to be finalized within seven days of that date.

Under the revised terms, a portion of the cash payment to Acron's controlling shareholders, amounting to approximately 310 million shekels out of a total of 667 million shekels, will be deferred until the end of 2024. Payments to public shareholders will not be delayed. The original merger terms involved a payment of 60% in Israel Canada shares and 40% in cash, totaling 1.24 billion shekels for all Acron shareholders.

The revised agreement improves terms for Israel Canada, which will now need to provide 930 million shekels in cash instead of 1.24 billion shekels. Israel Canada plans to finance this through a two-year loan of 600 million shekels from an Israeli bank and 330 million shekels from its own resources. The merger, initially agreed upon in February to create a real estate giant valued at 10 billion shekels, will now result in a company valued at approximately 7.4 billion shekels, reflecting a decline in the stock values of both companies since the initial agreement.

Other conditions, including approvals from the companies' general meetings, the Competition Authority, the Tax Authority, and banks, have been secured. Acron has agreed not to undertake unusual business activities or distribute dividends before the merger's completion, while Israel Canada is permitted to distribute up to 25 million shekels in dividends.