Shikun & Binui Transforms After Selling Shikun Energy for 4.45 Billion Shekels
Seven months after putting Shikun Energy up for sale, Shikun & Binui finalized a deal to sell the company for 4.45 billion shekels. Initially, when CEO Amit Berman sought buyers, offers reached only about 3.5 billion shekels, but he believed the company could fetch over 4 billion. The sale attracted two bidders backed by pension funds, who were more measured and less aggressive than individual businessmen, allowing Berman to negotiate firmly with Generation and secure favorable terms for the buyer, Saidoff.
The transaction will reduce Shikun & Binui's standalone debt from 3 billion shekels and cut its consolidated debt by half to approximately 5.5 billion shekels. Berman told Calcalist that the company will be fundamentally different post-sale. He explained that in recent years, Shikun & Binui was over-leveraged and struggled to develop its business amid rising interest rates. The deal will save hundreds of millions annually in financing costs and free up 3 billion shekels for business development, enabling the company to pursue new ventures previously hindered by high debt.
Berman outlined plans to acquire companies in elevator manufacturing, building control systems, and specialized construction methods. The company is exiting markets in Africa and Poland to focus managerial energy on Israel and the US. Shikun & Binui aims to become a major operator managing assets such as military bases and communication hubs, providing maintenance services like air conditioning and building systems. The company will shift from primarily a residential real estate developer to a large contracting and services firm, also acting as a contractor rather than only a developer.
Regarding why they did not wait for Keystone's 4.35 billion shekel offer without due diligence, Berman noted the signing process took about a month and a half, which is relatively quick. He dismissed claims of no due diligence, saying that no serious buyer would proceed without it.
