Alfred Akirov Plans to Delist Alrov Real Estate in NIS 788 Million Buyout

Alfred Akirov plans to delist Alrov from the Tel Aviv Stock Exchange. Alrov Real Estate announced this morning that it intends to submit a buyout offer for all public shares in the company at a price of NIS 32.21 per share, representing a 21.6% premium over the market price.

Private holding company Alrov Holdings, through which Akirov holds his shares, will be required to pay NIS 788 million to public shareholders to complete the acquisition. The company further noted that Mor Investment House, the only institutional body with a stake in the company holding the majority of public shares, has announced its intention to accept the offer.

Akirov holds 89% of the company's shares, which trades at a market capitalization of NIS 5.5 billion. The valuation offered by Akirov amounts to 90% of equity. Mor holds a 6% stake, which alone is sufficient to ensure the buyout offer is accepted.

The central goal for Akirov is the acquisition of control over Clal Insurance, which may be more practical through a private rather than public company. An acquisition via a public company poses problems under the Concentration Law, which prohibits a three-layer corporate pyramid.