Aura Israel Acquires Beit Bakfar for NIS 1.7 Billion
Translated & summarized from Mako by baba
Aura Israel, controlled by Yaakov Attarachi, is acquiring a controlling stake in senior living provider Beit Bakfar for an estimated NIS 1.7 billion. The deal includes a tender offer to minority shareholders and represents a significant premium over Beit Bakfar's current stock price. Aura aims to integrate Beit Bakfar's operations into its broader housing strategy, which spans from first-time buyers to senior living. The acquisition is expected to enhance Aura's market position and leverage Beit Bakfar's development pipeline.
The story in 5 lines · by baba
- Aura Israel is acquiring a controlling stake in Beit Bakfar for an estimated NIS 1.7 billion.
- The deal represents an 81.5% premium over Beit Bakfar's current stock price.
- Yaakov Attarachi stated the acquisition is a strategic move to become Israel's leading housing group.
- Beit Bakfar operates five senior living complexes and has a development pipeline of 884 units.
- The acquisition aims to expand Aura's offerings to include senior living solutions.
Real estate company Aura, controlled by Yaakov Attarachi, is acquiring a controlling stake (55%) in the senior living chain Beit Bakfar for an estimated NIS 1.7 billion. Aura plans to complete the full acquisition through a tender offer, which represents a significant premium of 81.5% over Beit Bakfar's morning stock price. The deal involves Aura purchasing the shares of the Blustein family, the current controlling owners, for NIS 935 million. Concurrently, Aura will extend a tender offer to minority shareholders (45%), including Poalim Equity, Mor Investment House, and Clal Insurance, based on the valuation agreed with the controlling owners. While the Blustein family will receive cash, the offer to minority shareholders will include a substantial stock component. This will consist of 30% cash and 70% in Aura shares, which will represent approximately 8.8% of Aura's equity post-allocation, based on a company valuation of NIS 5.5 billion. Beit Bakfar management and employees are also expected to benefit from the transaction, potentially receiving up to NIS 22 million in additional compensation, with employee options to be redeemed for cash. Yaakov Attarachi stated that the acquisition is a strategic move to become Israel's leading comprehensive housing group, expanding Aura's offerings from first-time homebuyers to senior living solutions. Beit Bakfar, founded in 1988, currently operates five senior living complexes with 975 units and has three new complexes under development. Aura views Beit Bakfar's development pipeline of 884 units as a key growth engine, intending to leverage its development and execution capabilities to optimize costs and enhance competitiveness while preserving Beit Bakfar's brand and service quality. Aura also sees potential in integrating Beit Bakfar's expertise with its urban renewal projects to develop specialized solutions for the elderly within renewal sites. Beit Bakfar's stock has experienced a decline of approximately 6% in the past year, bringing its market value to NIS 936 million, below its IPO valuation.
Mentioned
