Failed G City Sale Costs Broker 10 Million Shekels as New CEO Prepares to Take Over

The collapse of the major deal to sell controlling shares of the income-generating real estate company G City from Norstar, owned by Haim Katzman, to Ari Real Estate, led by Tzachi Abu, has left both businessmen bruised but undeterred. The deal's failure has also created clear winners and losers amid the unfolding drama. Among the winners is the Kelifa Fund, Katzman's close associate at G City, who is set to replace him as CEO within two months. Katzman advanced Kelifa's appointment from February 2027 to October this year, granting her generous terms including an annual salary of 4.4 million shekels and a "golden parachute" of two years' salary if her employment ends due to a change in control. Katzman expressed confidence in Kelifa's leadership, stating she will "take the company upwards" and praised the excellent management team.

On the other hand, Discount Underwriting, the investment banking firm managing Katzman's deal and led by Tzachi Sultan and Liran Razmovich, stands to lose a substantial commission estimated at up to 10 million shekels, typically 1-2% of the deal's 660 million shekel value. However, Discount Underwriting may still earn fees as it continues to seek a buyer for Katzman's shares. Norstar announced plans to revisit offers for selling part of G City's shares to a strategic investor through Discount Underwriting, explicitly ruling out selling shares on the stock exchange.

Katzman remains optimistic about completing a sale, noting he has already received renewed interest from multiple potential buyers and expects more to emerge. This ongoing search aims to replace Abu's group with a new investor under a similar transaction structure. The article also notes that institutional investors might benefit from the deal's collapse, with Simed potentially selling summer camps above their value, and mentions a modest trading volume that facilitated a notable entry for Abisror into the Tel Aviv Stock Exchange.