Investment House More Buys 12% of Gaon Group for NIS 100 Million
Translated & summarized from Globes by baba
Investment house More is acquiring approximately 12% of Gaon Group for about NIS 100 million, purchasing shares from Gaon Holdings and its controlling shareholders. The deal follows substantial stock price increases for both Gaon Group and Gaon Holdings this year. The funds will help Gaon Group redeem bonds and strengthen its financial position, as the company reported increased revenues and profits in the first half of the year.
The story in 5 lines · by baba
- Investment house More is acquiring 12% of Gaon Group for approximately NIS 100 million.
- The deal follows a 165% stock surge for Gaon Group and a 245% surge for Gaon Holdings this year.
- More is buying shares from Gaon Holdings and controlling shareholders the controlling shareholder and Guy Regev.
- Proceeds will fund early redemption of Gaon Group's NIS 52 million in bonds.
- Gaon Group reported NIS 390 million in revenue and NIS 13.8 million in net profit in H1.
Investment house More is acquiring approximately 12% of Gaon Group shares for about NIS 100 million. The deal involves More purchasing shares from Gaon Holdings and its controlling shareholders at NIS 18.7 per share, a discount of about 7.6% from the pre-announcement closing price. This transaction follows a significant surge in Gaon Group's stock price, which has risen approximately 165% since the beginning of the year. The stock of its controlling entity, Gaon Holdings, has jumped even higher, by 245% year-to-date.
The acquisition sees More buying 8.78% of Gaon Group's share capital from Gaon Holdings for NIS 74.8 million and an additional 2.95% from controlling shareholders Challenge Holdings, owned by the controlling shareholder, and CEO Guy Regev, for $25.1 million. Following the deal, Gaon Holdings' stake in Gaon Group will decrease from about 64.1% to 55.3%.
The controlling shareholder became the controlling shareholder in the summer of 2025, acquiring control for NIS 57 million. CEO Guy Regev joined the controlling shareholder in the controlling core, investing NIS 10 million. The controlling shareholder, a former industrialist, noted at the time that he wasn't entirely sure what he had bought but found it an interesting company with potential for optimization and strategic improvement.
The proceeds from the sale to More will be used, in part, for the early redemption of the company's "Heh" series bonds, to which the sold shares were pledged. The outstanding principal of these bonds is NIS 52 million, with the redemption payment set at approximately NIS 56 million.
Guy Regev expressed gratitude to More for their confidence, calling their entry as a significant shareholder an important milestone in the company's enhancement processes. He stated that the funds would enable the early redemption of bonds and other liabilities, significantly strengthening the company's financial stability and flexibility. Regev added that the company continues to implement its business strategy, focusing on improving profitability and shareholder value. In the first half of the year, Gaon Group reported revenues of approximately NIS 390 million, an 11% increase, and a net profit attributable to shareholders of NIS 13.8 million, up from NIS 11 million in the same period last year.
