Rani Zim Buys Back Stake in Shopping Center Firm
Translated & summarized from Calcalist by baba
Rani Zim is increasing his stake in Rani Zim Shopping Centers by buying up to 15% of the company's shares from the Haggag group. The initial purchase of 7.5% is for 75 million shekels, with an option for another 7.5% later. This move reverses Zim's previous sales of his holdings due to personal debt. The Haggag group, which became a partner in late 2024, will reduce its shareholding as a result of this deal.
The story in 5 lines · by baba
- Rani Zim will purchase up to 15% of Rani Zim Shopping Centers from the Haggag group.
- The initial 7.5% stake acquisition costs 75 million shekels at a 1 billion shekel valuation.
- Zim's stake could increase to 43%, while Haggag's would fall to 15%.
- The deal signifies Zim's return to increasing his holdings after prior debt-related sales.
- The Haggag group, a partner since late 2024, will realize part of its investment at a profit.
Rani Zim, chairman of Rani Zim Shopping Centers, is increasing his holdings in the company by purchasing up to 15% of its shares from the Haggag group. Initially, Zim will acquire 7.5% of the shares for approximately 75 million shekels, valuing the company at 1 billion shekels, about 37% above its current market value. He also secured an option to buy an additional 7.5% within the next year, at a company valuation of 1.15 billion shekels or 6% above the market price at the time of exercise, whichever is higher. If fully exercised, Zim's stake would rise from about 28% to 43%, while the Haggag group's share would decrease from around 30% to 15%. This move marks a reversal for Zim, who had been selling off parts of his stake in recent years due to personal debts, partly from his investment in the Psagot investment house. The Haggag group, controlled by brothers Tzachi and Ido Haggag, became a controlling partner in Rani Zim Shopping Centers at the end of 2024, later increasing its stake to approximately 30%. In February 2025, Zim sold about 8.8% of the company's shares to an investor group led by The Phoenix and the Shastovitch family for about 65 million shekels, at a company valuation of roughly 739 million shekels. Following that sale, his ownership dropped to about 28%, compared to the 54% he held before the Haggag group's entry. The Haggag group had purchased its roughly 30% stake in late 2024 and early 2025 for a total of about 195 million shekels. The current transaction allows them to realize part of their investment at a significantly higher valuation than their purchase price. In their 2025 financial reports, Haggag recorded a profit of about 38 million shekels from this share acquisition at an opportunistic price. Rani Zim Shopping Centers operates in income-generating real estate, primarily through commercial centers in peripheral areas. In recent years, the company has focused on reducing its leverage by selling assets and bringing in partners like the Haggag group, which injected capital. Zim stated, "Rani Zim Shopping Centers is a life's work for me, and I strongly believe in the company, its uniqueness, and its significant business potential." He added that the deal was based on the company's equity and expressed confidence that its continued development in commercial centers, energy, and server farms will unlock value in the coming years.
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