Hagag Group completes Bazan purchase from Israel Corp
Slightly less than a thirty day period stunning the cash current market, Hagag Group Genuine Estate Growth Ltd. (TASE: HGG), controlled by Yehuda Eido Hagag and Yitzhak Hagag, has accomplished the buy of the controlling stake in Bazan (Oil Refineries) (TASE: ORL), which owns the oil refinery in Haifa Bay. Hagag Team has acquired 16.7% of Bazan from Israel Company (TASE: ILCO), managed by Idan Ofer, for NIS 555 million, soon after discounting the purchased shares’ proportion of the NIS 60 million dividend declared by Bazan but not however paid.

The deal leaves Israel Corporation with a 7.3% stake in Bazan, on which the experienced traders to whom Israel Corporation sold 9% of Bazan previous November have an solution. The price in that deal was NIS .91 for every share, and it took Israel Corporation’s holding in Bazan from 33% to 24%. At that time, Israel Company believed that it would submit a net decline of NIS 269 million on the deal. The present offer with Hagag Group signifies that Israel Company is surrendering control of Bazan fifteen several years after purchasing it from the state.

Hagag Team has presented Israel Petrochemical Enterprises (TASE: PTCH), which controls Bazan jointly with Israel Corporation, a set selection to promote Hagag Team its 13.5% stake in the organization. If the selection is exercised, Hagag Group’s stake in Bazan will rise to 30%. The price tag that Hagag Group is shelling out Israel Company is about 25% underneath the present stock sector price tag.

Bazan’s market place cap at the near of buying and selling yesterday was NIS 4.39 billion. Due to the fact the commencing of this year, its share rate has recovered sharply, increasing 52%, but it is even now not back to where it was ahead of the outbreak of the coronavirus pandemic. About the previous 3 many years, Bazan’s share cost has fallen 23%.

Bazan refines crude oil, and generates and sells fuels, polymers, and other substances. It has a 2,140 dunam (535 acre) web page in Haifa Bay leased from the condition for eighty many years. The possible that Hagag Group sees in Bazan lies in the future evacuation of the internet site, which has grow to be more probably right after the government’s choice in March final 12 months to conclude petrochemicals exercise in Haifa Bay and to endorse a prepare for the growth of the location in a decade.

Hagag Group discounts in household, place of work, and commercial authentic estate, largely in Tel Aviv. It is also active in resorts, and a short while ago determined to enter the sheltered housing industry.

The organization mentioned in a assertion yesterday evening, “We are very pleased to be joining the Bazan group, a single of the oldest and most significant providers in Israel. We intend to act in accordance with the government’s conclusion on the long term of the petrochemicals vegetation in Haifa Bay, for the profit of the firm’s shareholders, workforce, and associates.”

Released by Globes, Israel business enterprise news – en.globes.co.il – on April 18, 2022.

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