D.S.K. Considers Rights Offering and Debt Repayment to Restructure Holdings in Nakhashim U'Binyan

The board of directors of D.S.K. has approved a preliminary framework, still under review, to conduct a rights offering to shareholders sufficient to repay the company's outstanding obligations. Following this, the plan involves distributing all of D.S.K.'s holdings in Nakhashim U'Binyan directly to its shareholders. D.S.K.'s debt to bondholders currently stands at 450 million shekels. This restructuring aims to repay the debt and streamline D.S.K.'s corporate structure, enabling operational efficiencies. However, it will not allow major shareholders, including Tzachi Nahmias and the Zelkind brothers, to acquire additional shares.

If completed, the move will simplify the group's ownership structure by converting D.S.K. shareholders into direct shareholders of Nakhashim U'Binyan, bringing them closer to the company's main asset, Gav Yam. The primary asset of Nakhashim U'Binyan is the Bryant Tower in New York, which the company is currently attempting to sell, alongside its stake in Gav Yam.

D.S.K. emphasizes that this is only a conceptual plan and has not yet received final approval. It remains subject to various approvals, including from the board, regulators, the court, and favorable market conditions. The company states the goal is to unlock shareholder value, reduce costs, and optimize the group's structure.