Akirov Completes Takeover, Delisting Alrov From Stock Exchange

Alfred Akirov is set to complete the delisting of Alrov Real Estate and Hotels from the Tel Aviv Stock Exchange. The company announced that the full takeover bid by Akirov Holdings and Akirov Investments and Development has been accepted, meeting the required response rate for a compulsory sale mechanism. Upon completion, Akirov and his companies will hold all of the company's shares and voting rights, excluding dormant shares.

The offer was made at NIS 322.41 per share, valuing Alrov at approximately NIS 6.64 billion. Akirov's companies sought to acquire about 2.45 million shares, representing 11.87% of Alrov's equity, for a total of roughly NIS 788 million. This price represented a premium of about 22% over the share price before the offer was announced in late September.

The process began a month ago when Akirov declared his intention to buy out public shareholders and delist Alrov. Following this announcement, the stock surged over 20%, nearing the offer price. The full offer details were published on October 13, with shareholders having until October 28 at 2 PM to respond.

Mor Investment House, holding approximately 1.23 million Alrov shares (6% of the company), was a key participant and had previously signaled its intent to accept the offer for its entire stake. With the compulsory sale condition met, remaining shares will also be purchased at the set price, leaving no publicly traded Alrov shares.

Alrov will become a private company and its shares will be delisted, but it will remain a reporting entity due to its outstanding bonds held by the public. This move is also seen in the context of Alrov's significant stake in Clal Insurance and Akirov's past attempts to gain control of the insurer. While becoming private may allow Akirov to restructure holdings, it does not grant him control of Clal Insurance or bypass regulatory limitations for bond-issuing companies.