developing· Economy· Updated
Rani Tzimm Buys Back Control of Shopping Center Firm
The Hagag Group has signed an agreement to sell a 7.5% stake in Rani ZIM Malls back to Rani ZIM Holdings for NIS 75 million. The transaction values the shopping center company at NIS 1 billion, representing a premium of approximately 30% to 37% over its current stock market value. Of the total proceeds, NIS 26 million will be used to repay company debt, with the remaining NIS 49 million before tax going to the Hagag Group.
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What happened
- 01The Hagag Group is selling a 7.5% stake in Rani ZIM Malls back to Rani ZIM Holdings for NIS 75 million.
- 02The transaction values Rani ZIM Malls at NIS 1 billion, reflecting a premium of 30% to 37% over its market price.
- 03Rani Zim holds an option to purchase an additional 7.5% stake within the next year.
- 04The deal will initially reduce the Hagag Group's stake to 22.16% and increase Zim's stake to over 36%.
- 05If the option is fully exercised, Zim's stake will rise to over 43% while the Hagag Group's stake will drop to 15%.
- 06According to Globes, the joint control agreement will terminate if the Hagag Group's holdings fall below 15%.
- 07Of the transaction proceeds, NIS 26 million will be allocated to repay company debt.
- 08The partnership between the Hagag Group and Rani Zim began in December 2024 at a company valuation of NIS 520 million.
Under the agreement, Rani Zim also secured an option to purchase an additional 7.5% stake within the next year. If this option is fully exercised, Zim's ownership in the company will rise to around 43% or 44%, while the Hagag Group's holdings will decrease to approximately 15%. According to Globes, the joint control agreement between the parties will terminate if the Hagag Group's stake falls below the 15% threshold, leaving Zim as the sole controlling shareholder.
The transaction marks a reversal for Zim, who had previously been selling off parts of his holdings to manage personal debts, including those stemming from his investment in the Psagot investment house. The partnership between the Hagag Group, controlled by brothers Tzachi and Ido Hagag, and Rani Zim began in December 2024 when the group acquired a stake at a company valuation of NIS 520 million.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: Globes. Read Globes’s originalThe coverage
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