Investment House More Buys 12% of Gaon Group for NIS 100 Million

The transaction involves purchasing shares at 18.7 shekels per share, representing a discount of about 7.6% from the closing price before the announcement. Mor is buying an 8.8% stake from the parent company, Gaon Holdings, for 74.8 million shekels. The remaining shares, valued at approximately 25 million shekels, are being acquired from other controlling shareholders, including Challenge Holdings and Gaon Group CEO Guy Regev.

Following the sale, Gaon Holdings will reduce its ownership from 64.1% to approximately 55.3%, thereby retaining its controlling stake in Gaon Group. Gaon Holdings plans to use the proceeds for the early redemption of its Series E bonds, which total 52 million shekels according to Globes. This move is intended to reduce the company's leverage and improve its financial flexibility.

The acquisition follows a major surge in Gaon Group's stock, which has risen approximately 165% since the beginning of the year, while Gaon Holdings' stock has jumped 245% over the same period. Gaon Group reported 390 million shekels in revenue and 13.8 million shekels in net profit for the first half of the year.