Alrov Set for Tel Aviv Delisting as Akirov Completes 788 Million NIS Buyout
Alfred Akirov has completed a buyout of Alrov Properties for 788 million NIS, paving the way to take the real estate firm private and potentially pursue control of Clal Insurance.
Alfred Akirov, the controlling shareholder of Alrov Properties and Lodgings, has successfully completed a buyout offer to take the company private, resulting in its impending delisting from the Tel Aviv Stock Exchange. Under the terms of the fast-track transaction initiated in late September, public shareholders will receive 322.4 NIS per share, representing a 20% premium over the closing price prior to the announcement.
The total consideration for the public shareholders stands at approximately 788 million NIS, valuing the company at around 6.6 billion NIS, which is roughly 10% below its equity capital. Alrov's stock surged 21% over the past month and 11% over the past year. Following the completion of the buyout, Akirov and his private entities will hold 100% of Alrov's share capital, transforming it into a private firm while maintaining its status as a reporting bond issuer.
The buyout proceeded as anticipated after Mor Investment House, the sole institutional investor holding a 6% stake, announced its intention to accept the offer. Akirov already held approximately 88% of Alrov's shares prior to the bid. Capital market experts note that privatization may pave the way for Akirov to attempt a takeover of Clal Insurance Enterprises Holdings, in which Alrov currently holds a 14.2% stake.
Alrov operates primarily in income-producing real estate and luxury hotels across Europe, alongside its substantial holdings in Clal Insurance. Analysts suggest that moving Alrov to private ownership will allow Akirov to restructure the Clal Insurance stake and potentially ease long-standing regulatory hurdles as he seeks to secure a controlling permit in the insurance firm.
