Aura Buys Bet BeKfar for $1.7 Billion, Boosting Bet BeKfar Stock

The stock of Bet BeKfar, an Israeli senior living company, surged 60.64% on Monday, closing at 2,151 agorot per share. This significant increase was driven by Aura's announcement that it is acquiring Bet BeKfar for approximately 1.7 billion shekels. The trading volume for Bet BeKfar's stock reached about 19.26 million shekels, which is exceptionally high compared to its usual low liquidity. The average daily trading volume for the 30 preceding trading days was only around 88,600 shekels, meaning Monday's volume was 217 times the average.

Aura, a real estate company, is expanding its presence in the property market by entering the senior living sector. The company is purchasing full ownership (100%) of Bet BeKfar, one of Israel's established senior living providers. The total transaction value is approximately 1.7 billion shekels, to be paid in cash and Aura shares. Around 1.15 billion shekels will be paid in cash, with the remaining 550 million shekels paid through an allocation of Aura shares, valuing Aura at 5.5 billion shekels. The sellers' shareholders will become shareholders in Aura, reflecting confidence in the group's growth potential and business strategy. Upon completion, Bet BeKfar will become a private company fully owned by Aura.

This acquisition is a key part of Aura's growth and diversification strategy. Aura, which sold 780 apartments in nine months, is now extending its operations beyond residential development and urban renewal into the senior living field. This sector is experiencing rapid growth, characterized by long-term demand and stable, ongoing operational revenues. Bet BeKfar, founded in 1988, operates five senior living complexes with a total of 975 units. The company is financially sound, un-leveraged, and has an "ilA+" credit rating for its issued bonds.