Israeli Canada Loses Nearly 250 Million Shekels in Failed Takeover Bid for Katzman's Real Estate Assets

Barak Rosen and Assi Tochmeyer, co-owners of Israeli Canada, a publicly traded company valued at 6.3 billion shekels, have suffered a significant financial setback related to their attempt to take control of real estate assets owned by Haim Katzman. Katzman is currently transferring control of G City shares to Tzahi Abu. Rosen and Tochmeyer’s failed takeover attempt began about four and a half years ago and culminated in a costly loss.

In January 2022, Israeli Canada surprised the market by acquiring a 10% stake in Norstar, the company through which Katzman holds controlling shares in G City. This move was widely interpreted, including by Katzman, as a hostile takeover attempt. Subsequently, Katzman sold approximately 12% of Norstar shares to Israeli Canada for 192 million shekels, contingent on a ceasefire agreement and Israeli Canada’s commitment not to seek control.

Overall, Israeli Canada invested around 344 million shekels in Norstar shares. In April 2022, Israeli Canada proposed a merger to Norstar’s board, offering to buy all shares at a company valuation of about 2 billion shekels, a 24% premium over the market value at that time. However, due to rising interest rates and a sharp decline in Norstar’s share price, Rosen and Tochmeyer withdrew their offer.

Currently, Norstar’s market value stands at only 500 million shekels, a quarter of the proposed purchase price. Israeli Canada’s 14.5% stake in Norstar is now worth about 74 million shekels, reflecting an estimated paper loss of roughly 250 million shekels. This episode highlights the risks involved in real estate investment and takeover attempts amid volatile market conditions.