Hagag Brothers Profit $19 Million in Deal to Sell Stake Back to Rani Tzims
Translated & summarized from Bizportal by baba
Investors Tzachi and Ido Hagag will sell a 7.5% stake in Rani Tzims' shopping center company back to Tzims for 75 million shekels. This deal, valuing the company at 1 billion shekels, allows the Hagags to realize a substantial profit on their initial opportunistic investment made when Tzims faced financial difficulties. Tzims has an option to buy more shares, potentially regaining full control. The company has been expanding its retail footprint, though it recently lowered future earnings forecasts.
The story in 6 lines · by baba
- Hagag brothers to sell 7.5% of Rani Tzims' company for 75 million shekels.
- The deal values the company at 1 billion shekels, a premium over its stock price.
- Rani Tzims has an option to buy an additional 7.5% stake, potentially regaining control.
- Hagags initially invested 195 million shekels in late 2024/early 2025 at a lower valuation.
- The investment was opportunistic, made when Tzims needed funds due to prior investments.
- The company has expanded to 15 shopping centers but recently lowered future forecasts.
Investors Tzachi and Ido Hagag are set to sell a 7.5% stake in Rani Tzims' shopping center company back to Tzims for 75 million shekels (approximately $19 million). The deal values the company at 1 billion shekels, a significant premium over its current stock price. Tzims also holds an option to purchase an additional 7.5% stake within the year, which could return control of the company he founded to him. The Hagag brothers initially invested approximately 195 million shekels in late 2024 and early 2025, acquiring about 30% of the company when Tzims was in financial distress due to prior investments, notably in the Psagot investment house. Their entry was at a company valuation of around 520 million shekels before capital infusion, representing a discount of about 35% relative to the company's equity at the time. This opportunistic investment has yielded a paper gain of over 100 million shekels for the Hagags within two years. The current transaction allows the Hagags to realize a portion of their investment as cash, with 26 million shekels earmarked for debt repayment and the remaining 49 million shekels available for other ventures. The Hagag group is also exploring international expansion, including projects in Baku, Azerbaijan. Meanwhile, Rani Tzims aims to regain control of his company, which has expanded its operations to 15 shopping centers, primarily in peripheral areas and Arab communities, under the Tzims Urban and SEVEN brands. Despite recent growth in rental and management income, the company lowered its 2026 NOI and FFO forecasts due to project delays and construction issues.
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