Aura Israel Acquires Beit Bakfar in $450 Million Deal
Translated & summarized from N12 by baba
Real estate firm Aura, led by Yaakov Atrakchi, is acquiring a controlling stake in senior living provider Beit Bakfar for NIS 1.7 billion. The deal includes a premium for shareholders and aims to integrate Beit Bakfar's operations into Aura's broader housing strategy. Beit Bakfar currently operates five senior living facilities and has several new projects in development.
The story in 5 lines · by baba
- Aura Israel is acquiring a controlling stake in senior living chain Beit Bakfar for NIS 1.7 billion.
- The acquisition represents an 81.5% premium over Beit Bakfar's current share price.
- Yaakov Atrakchi aims to make Aura Israel the leading comprehensive housing group in the country.
- Beit Bakfar operates five senior living complexes and has three new projects in development.
- The deal includes cash and stock components for the selling shareholders.
Real estate company Aura, controlled by Yaakov Atrakchi, is acquiring a controlling stake (55%) in the senior living chain Beit Bakfar for NIS 1.7 billion (approximately $450 million). Aura plans to complete the acquisition through a tender offer, which represents a significant premium of 81.5% over Beit Bakfar's morning share price.
The deal involves Aura purchasing the Blushtein family's shares, the controlling owners of Beit Bakfar, for NIS 935 million. Simultaneously, Aura will extend a tender offer to minority shareholders (45%), including Poalim Equity (18%), Mor Investment House (8%), and Clal Insurance (6%), based on the valuation agreed with the controlling shareholders. While the Blushtein family will receive cash, the tender offer will include a substantial stock component.
Under the terms, 30% of the transaction value will be paid in cash (NIS 229 million), with the remaining 70% paid in Aura shares. These shares will constitute approximately 8.8% of Aura's equity post-allocation, based on a company valuation of NIS 5.5 billion, a slight increase from its current market value. Additionally, Beit Bakfar's management and employees are expected to receive up to NIS 22 million in additional compensation, with employee options to be redeemed for cash.
Yaakov Atrakchi stated that the acquisition is a strategic move to establish Aura as Israel's leading comprehensive housing group, expanding its offerings from first-time homebuyers to senior living solutions. Beit Bakfar, founded in 1988, operates five senior living complexes with 975 units and has three new complexes under development. Aura intends to leverage its development and execution capabilities to optimize construction costs and enhance competitiveness while preserving Beit Bakfar's brand and service quality.
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