Ari Real Estate Acquires Stake in G City as Tel Aviv Market Awaits Bank of Israel Rate Decision

Ari Real Estate, controlled by Tzachi Abu, is purchasing a 26% stake in the income-generating real estate company G City from Norstar, owned by Haim Katzman. The deal, valued at 661 million shekels for 44 million shares, values G City at 2.55 billion shekels, 30% above its stock market valuation. Payment will be split, with 230 million shekels paid upon completion and 431 million shekels six months later. Both parties hold options to buy or sell an additional 12 million shares (about 7%), which could increase Ari Real Estate's control to 33%, establishing joint control with Norstar. This structure may enable G City to list its subsidiaries in Poland and Gazit Israel without violating Israeli concentration laws.

In other market moves, Meitav is making a second tender offer to acquire Peninsula, aiming to delist the non-bank credit company from trading. Meitav currently holds 88.1% of Peninsula's shares but needs 95% to force delisting. The offer proposes exchanging one Meitav share for 38.5 Peninsula shares, effectively valuing Peninsula shares at 3.6 shekels each, a 10% premium over last week's closing price.

Hotel chain Fattal has raised 488 million euros for its third partnership with institutional investors, targeting a total of 800 to 900 million euros (2.7 to 3.1 billion shekels) to acquire hotels in Europe and the United States. While Fattal's operations have focused on Europe and Israel, it recently approved expanding into the U.S. through this partnership.

As the Tel Aviv Stock Exchange opens a new trading week, investors await the Bank of Israel's interest rate decision expected at 16:00. Forecasts predict a rate cut from 3.75% to 3.50%. Attention will also focus on updated economic forecasts and Governor Amir Yaron's press conference. The market faces heightened political tensions following the government's refusal to comply with a Supreme Court ruling on the Second Authority and the growing risk of a constitutional crisis ahead of upcoming elections. Global markets are also entering a new trading week, with U.S. futures showing modest gains and oil prices declining slightly. Israeli and U.S. bond yields remain stable.