Israel Canada and Acro Announce Merger Completion Next Week
Translated & summarized from Ice by baba
Israel Canada and Acro are set to finalize their merger next week, informing investors of the impending completion and data transfer. The deal, initially valued higher, now reflects a combined market value of approximately NIS 7.66 billion. The merger's completion date has been pushed back multiple times, with a final deadline indicating an upcoming execution. Israel Canada has also reported financial results showing a transition to profitability in the first quarter.
The story in 5 lines · by baba
- Israel Canada and Acro will announce merger completion next week, informing investors of data transfer.
- The combined market value of the merged companies is now approximately NIS 7.66 billion.
- The merger's completion date was postponed from September to October, with a final deadline approaching.
- Israel Canada will raise NIS 930 million for shareholders and an additional NIS 600 million from a bank.
- Israel Canada reported a net profit in Q1, a turnaround from last year's loss, with increased revenues.
Israel Canada and Acro, two real estate firms that agreed to merge, are set to announce the completion of the deal next week, according to information sent to investors on Tuesday. The companies informed investors that the merger of Acro into Israel Canada will be finalized in the coming days, including the transfer of personal data and continued communication post-merger. Acro stated that certain databases, including financial and legal information related to customer transactions, will be transferred to Israel Canada.
The original merger agreement was reached in February, with Acro valued at NIS 3.1 billion and Israel Canada at NIS 7 billion. Israel Canada committed to transferring 60% of its shares and the remainder in cash, totaling approximately NIS 1.24 billion. However, the combined current market value of both companies has decreased. Israel Canada is now valued at NIS 5.06 billion and Acro at NIS 2.6 billion, resulting in a combined value of approximately NIS 7.66 billion, a reduction of about NIS 2.4 billion due to stock price declines.
The merger's completion date was initially set for September, then postponed to October due to technical issues. A final deadline was set within seven days of October 25, indicating the merger is likely to proceed next week. As part of the agreement, half of the payment to Acro will be deferred for 14 months. With Tzachi Arbov as a controlling shareholder, Israel Canada will need to raise NIS 930 million instead of NIS 1.24 billion for shareholders, and plans to secure an additional NIS 600 million from a leading bank, funding the rest with its own resources.
Israel Canada reported selling apartments worth NIS 1 billion in the first half of the year, with an average sale price of NIS 10 million for apartments in the Sde Dov area. The company transitioned from a net loss last year to a profit in the first quarter, with increased revenues and maintained high average apartment prices despite market conditions. In the second quarter, Israel Canada reported revenues of approximately NIS 340.2 million and a net profit attributable to shareholders of about NIS 22.1 million, compared to a loss of NIS 4 million in the same period last year. Excluding losses from its hotel operations, the second-quarter profit was around NIS 42 million per shareholder. First-half revenues reached approximately NIS 506.8 million, up from NIS 399.3 million year-on-year, though the company recorded a net loss of about NIS 35.8 million attributable to shareholders, an increase from NIS 30.9 million last year, primarily due to higher hotel operating and management expenses.