Family Inheritance Dispute Threatens Eldar-Radco Urban Renewal Merger
The merger deal in which Eldar Group acquired control of urban renewal company Radco is facing complications due to an ongoing inheritance dispute within the Rafali family. Eldar, owned by Amir Shalit and partly held by Leumi Partners, agreed to merge its urban renewal operations into Radco, where the Rafali family holds an 80% stake and Mizrahi Tefahot Invest owns 20%. Following the merger, Eldar would hold 60% of the combined company, the Rafali family 40%, and Mizrahi Tefahot would exit. Eldar also planned to inject 100 million shekels into Radco, valuing the merged entity at approximately 300 million shekels with a portfolio of 13,000 urban renewal apartments.
However, heirs of the late Avi Rafali, who passed away in 2024, have sent a stern legal warning to Eldar claiming the transaction ignored their alleged rights in Radco. They assert that Avi Rafali owned a one-third partnership in all Rafali Group assets, including Radco, held in trust by his brothers Yitzhak and Rafi Rafali, and now belonging to his heirs. The heirs are engaged in a family court case in Tel Aviv seeking recognition of their rights and a share of the proceeds from the Eldar-Radco deal. They warn that continuing the transaction or transferring funds could expose Eldar to legal risks, including a potential injunction to halt or cancel the merger.
The heirs, represented by attorneys Guy Gisin, Yoel Freilich, and Natali, also highlight that some heirs are minors, requiring prior family court approval for any deal affecting their rights, which they claim was not obtained. They demand Eldar immediately freeze payments related to the deal, stop transferring funds to Yitzhak or Rafi Rafali, and provide all transaction documents. If their demands are not met, they intend to seek a temporary restraining order and include Eldar and its management as parties in the legal proceedings.
Eldar responded that the transaction is proceeding as planned and that it does not involve itself in the personal matters of the Rafali family.
