Rani Tzimm Buys Back Control of Shopping Center Firm
Translated & summarized from Globes by baba
Rani Tzimm is set to regain sole control of Rani Tzimm Shopping Centers by purchasing a 7.5% stake from Haggag Group for NIS 75 million, with an option for an additional 7.5%. This deal values the company at NIS 1 billion, significantly higher than its current market worth. The transaction will increase Tzimm's ownership to over 36%, potentially reaching 44% if the option is exercised, while Haggag Group's stake will drop below the 15% threshold required for joint control. Tzimm stated his strong belief in the company's future potential and ongoing development.
The story in 5 lines · by baba
- Rani Tzimm will increase his stake in Rani Tzimm Shopping Centers to over 36% through a NIS 75 million deal.
- The transaction values Rani Tzimm Shopping Centers at NIS 1 billion, a 37% premium over market value.
- Tzimm has an option to buy an additional 7.5% stake, which would grant him sole control.
- Haggag Group's stake will fall below 15%, ending the joint control agreement.
- The deal marks Tzimm's return to increasing his holdings after previously selling shares to reduce debt.
Haggag Group is reducing its holdings in Rani Tzimm Shopping Centers, selling 7.5% of the company's shares back to Rani Tzimm for NIS 75 million. The deal values the company at NIS 1 billion, a 37% premium over its current market value of approximately NIS 730 million. Tzimm also secured an option to purchase an additional 7.5% stake within the next year, which would bring his total ownership to about 15% and make him the sole controlling shareholder.
As of the announcement, Haggag Group held roughly 29.66% of Rani Tzimm's shares, while Tzimm held about 28.76%. Following the transaction, Haggag Group's stake will decrease to approximately 22.16%, and Tzimm's will increase to about 36%. If Tzimm exercises the option, his share could rise to around 44%, leaving Haggag Group with about 15%. The joint control agreement between the parties stipulates that Haggag Group's stake falling below 15% will terminate their shared control.
Haggag Group, controlled by brothers Ido and Tzachi Haggag, entered into partnership with Tzimm about two years ago, in December 2024, at a company valuation of NIS 520 million. At that time, they acquired approximately 25% of the shares for about NIS 104 million, also purchasing additional shares from Tzimm and Beit Ha'zahav company. By February 2025, Haggag Group's holdings were valued at approximately NIS 235 million, representing a paper profit of about NIS 50 million. The current sale will yield NIS 75 million, with NIS 26 million allocated to repaying a portion of debt, resulting in an expected free cash flow of approximately NIS 49 million before tax.
Haggag Group stated that the deal is not expected to have a material impact on its results but will generate approximately NIS 49 million in free cash flow after proportional debt payment and before tax. For Tzimm, this move signifies a shift from selling shares to reduce personal debt in recent years to increasing his stake in the company. Previously, in February 2025, he sold about 8.8% of the company's shares for approximately NIS 65 million to Harel Insurance and Shachaf Investments, as part of a broader effort to reduce personal liabilities. The company itself has also worked to reduce leverage by selling assets, including the Mego development company for NIS 280 million and half the rights to the Ma'alot shopping center for NIS 121 million.
Tzimm expressed strong confidence in Rani Tzimm Shopping Centers, calling it his "life's work" and highlighting its unique potential. He noted the company's growth in active shopping centers and its recent significant deleveraging and financial flexibility. Tzimm believes that the company's continued development in malls, energy, and server farms will unlock substantial value, further enhancing its assets and value in the coming years.
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