Norstar Receives Partnership Agreement Amid G City Deal Dispute Between Haim Katzman and Tzachi Abu

Shareholders involved in the G City real estate deal transferred the partnership agreement between Ari Nadlan, controlled by Tzachi Abu, and Yispro-Tanofort, owned by Kidan Dahari and Yaron Adiv, to Norstar offices, controlled by Haim Katzman. This move follows Katzman's demand last Friday to review the agreement, which Abu initially refused to provide. Katzman will now assess whether the agreement contains clauses that could legally justify withdrawing from the deal. If such clauses exist, Katzman might use them to cancel the agreement.

The transfer of documents suggests that the buyers do not want the deal to collapse or at least do not want to give Katzman grounds to back out. Katzman expressed disappointment that Abu included Yispro-Tanofort as a partner, stating, "What did you do? I went to sleep with Rachel and woke up with Leah," referencing the biblical story of Jacob. Notably, the legal representatives for the parties are from the same law firm, Meitar, with Ari Nadlan represented by attorney Tomer Sela and Norstar by attorney Ariel Aminzach, indicating the documents were exchanged within the same office.

Norstar, currently controlling G City, is set to receive 661 million shekels for selling 26% of G City shares to Abu, Dahari, and Adiv. Part of this sum, 280 million shekels, will be reinvested into G City through a planned capital increase of about one billion shekels after the deal's completion. The capital is crucial for repaying bondholders and supporting G City's financial needs.

Yesterday, Norstar's stock fell 4.5% amid concerns the deal might fail, signaling market anxiety. Norstar's recent statement cautiously acknowledged Yispro-Tanofort's joining the deal without endorsing the change, reflecting Katzman's complex position. Unless Katzman has alternative buyers, Norstar depends on the deal's completion to settle debts and secure G City's capital injection. Discount Capital Underwriting chairman Tzachi Sultan, advising Norstar, stands to earn a 10 million shekel fee if the transaction closes successfully.