Alrov Real Estate to Be Delisted Following Controlling Shareholder's Acquisition Offer

Alrov Real Estate and Hotels is set to be delisted from the Tel Aviv Stock Exchange after its controlling shareholder, Alfred Akirov, had his acquisition offer accepted. The move, which Akirov completed within a month of its announcement on September 29, will see the company become privately held. Public shareholders will receive NIS 322.4 per share, a premium of approximately 20% over the share price before the initial announcement, totaling about NIS 788 million for all public shareholders. The offer values the company at approximately NIS 6.6 billion, about 10% below its equity. Akirov, through his private companies Akirov Holdings and Akirov Investments and Development, will hold 100% of Alrov's shares upon completion. The delisting was largely anticipated, as the institutional investor More, which holds about 6% of Alrov's shares, had already indicated its intention to accept the offer. Alrov Real Estate primarily operates in income-generating real estate and hotels, with luxury hotels in Europe among its assets. Crucially, the company also holds a 14.2% stake in Clal Insurance, making it the largest shareholder in the insurance firm, which has operated without a controlling shareholder for years. Market sources suggest that taking Alrov private will allow Akirov to transfer the Clal Insurance stake to a private company above Alrov, separating it from Alrov's public debt. Akirov has reportedly been in discussions with regulators regarding his desire to gain control of Clal Insurance, and this new structure may facilitate that goal.