Investment House More Buys 11.7% of Gaon Group for $27 Million

Investment house More is acquiring a 11.7% stake in Gaon Group for approximately NIS 100 million (about $27 million), making it a significant shareholder. The deal allows controlling shareholders, Challenge Holdings and CEO Guy Regev, to cash out some of their holdings while using most of the proceeds to fully repay the parent company Gaon Holdings' bond debts, without relinquishing control.

The transaction reflects institutional investors' interest in companies operating in essential infrastructure sectors like water, sewage, gas, and waste treatment. Gaon Group is active in these areas through production, planning, execution, and marketing of infrastructure products. More's purchase was made off-exchange at NIS 18.7 per share.

Of the total proceeds, about NIS 25.1 million comes from a direct share sale by the controlling shareholders. An additional NIS 74.8 million from the sale of parent company Gaon Holdings' shares is earmarked for the early redemption of its Series E bonds and settlement of all its financial obligations. This allows the parent company to use the funds to clear its debts instead of distributing them as dividends.

Following the deal, Gaon Holdings is expected to retain approximately 55.3% of Gaon Group's shares and maintain control. Guy Regev stated that More's entry as a significant shareholder validates the company's improvement plan, adding that freeing the balance sheet from liabilities will help the group expand its market share in planning, execution, and trade, focusing on long-term profitability and investor value.

The deal occurs amid growth for Gaon Group. In the first half of 2026, revenues reached about NIS 389.8 million, an 11% increase year-over-year, with EBITDA at NIS 69.4 million. Gaon Group's operations are divided into three main divisions: Industry (producing pipes and valves), Initiation, Planning, and Execution (managing infrastructure projects), and Trade (distributing infrastructure products).