Amos Luzon Negotiating to Acquire Control of Kohan Properties

Businessman Amos Luzon is in advanced negotiations to acquire control of Kohan Properties from Natanel Lorenzi. Lorenzi recently gained control of the company's shares after exercising a lien on a loan he provided to the previous controlling shareholder, Mike Kohan. Luzon is expected to pay approximately $6.4 million for the shares through his holding company, Luzon Entrepreneurship and Energy.

Kohan Properties has faced turmoil in recent months after it was revealed that Mike Kohan allegedly withdrew company funds for his private business debts. The company raised about 412 million shekels ($110 million) in March through a bond offering on the Tel Aviv Stock Exchange. These events led to changes in the company's management and ownership structure.

Lorenzi became involved when Kohan took out a loan of about $4 million from Lorenzi's company, Dekama Finance, using all of Kohan Properties' shares as collateral. After Kohan failed to repay the loan on time, Lorenzi seized the shares. The debt, including interest, reportedly reached about $4.6 million.

The company owns a significant portfolio of 35 commercial properties in the United States, valued at approximately $710 million. However, 8 of these properties, worth about $213 million, are pledged to bondholders. Lorenzi's takeover occurred amidst challenges with the company's debt holders. The board appointed Ran Ben Daniel as CEO and brought in Assaf Ravid to help develop a work plan and manage the company, including exploring asset sales.

Lorenzi reportedly committed to meeting the company's repayment obligations to bondholders, with potential asset sales being considered. The deal with Luzon comes shortly after Lorenzi acquired the shares free of liens, allowing him to sell them. However, the sale of assets pledged to bondholders is subject to restrictions and their involvement. For Luzon, this potential acquisition mirrors his past move when he bought Dori Construction in 2016 for 10 million shekels, a company now valued at approximately 1.9 billion shekels.