Katzman’s G City reshuffle sparks backlash from major shareholder Barak Rosen
Shlomo Katzman, controlling shareholder of G City through his 29.8% stake in Norsar, said on Thursday he is examining the sale of part of Norsar’s 54.3% holding in G City. The move could turn G City into a first-tier company under Israel’s concentration law, meaning it would no longer have a formal controlling core shareholder and could even get a new owner. Katzman founded G City 35 years ago and has controlled it throughout that period.
The sharpest public response came from Barak Rosen, a control holder in Israel Canada, which is Norsar’s second-largest shareholder with 14.5%. Rosen told Calcalist, “Katzman has to go home. The moment that happens, the stock will jump 200%. He did not make a single strategic move in the company. He is all financial maneuvers.” Rosen also said Katzman did not brief him in advance, unlike Rosen’s own practice with major Israel Canada shareholders.
Israel Canada entered Norsar in 2022, initially buying about 10% in the market and later, after Katzman sold it another roughly 12% to slow what was seen as an attempted takeover, built a total position of about 22% for around 345 million shekels. After Norsar’s 2023 capital raise of 306 million shekels at 13.18 shekels per share, that stake was diluted to about 14.5%, now worth roughly 80 million shekels, leaving Israel Canada with about 270 million shekels in paper losses. The loss could have been larger had Rosen and Assi Toumaier succeeded in a bid to buy full control of Norsar at a 2 billion shekel valuation.
Despite Rosen’s criticism, Katzman has in recent years sold assets and holdings worth about 7 billion shekels in G City, Norsar’s only asset, helping stabilize the group when Norsar bonds traded at yields near 40%. Analysts at Leedar said a successful sale could bring substantial capital, further reduce leverage, and move the company toward a target debt ratio of about 50% by 2028. Katzman is hearing offers, but so far they imply only a 15% to 20% premium to market price, while he is seeking something much closer to double the current share price.
The likely path now is the sale of about 30% of G City to a strategic investor, leaving Norsar below 25% and enabling G City to become a first-tier company. That could eventually allow the group to float subsidiaries, including Gazit Israel and possibly G City Europe, and unlock value. Katzman has not chosen a buyer, does not want a shared-control arrangement, and still faces the question of whether investors, especially Israel Canada, will accept the terms needed to complete the deal.
