Giant deal completed: merger between Donitz Elad and Dan Nadlan
Donitz Elad will receive 100% of Dan Nadlan shares in exchange for share allocation. The Value LBH fund will hold about 16% of Achim shares, while other Dan shareholders will collectively hold 17% of the company's shares.
Negotiations between Ronen Yafo's Donitz-Elad and Dan Nadlan regarding a merger and share exchange deal are reaching the final stretch. Donitz-Elad will acquire Dan Nadlan in exchange for the allocation of company shares to its shareholders.
The merger negotiations began several weeks ago with the goal of creating a company valued at 4 billion shekels. Donitz sought to acquire the company that was spun off from the transport operator. Donitz is currently traded at a market value of 1.99 billion shekels, and it is estimated that the merger will double the companies' value.
The parties have signed a memorandum of understanding. The deal is expected to expand Donitz Elad's operations in high-demand areas and add a significant, high-quality portfolio of land, projects, and income-generating assets to the group.
This is a triangular merger deal. Upon completion, Donitz Elad will hold 100% of Dan Nadlan's shares in exchange for share allocation. The Value LBH fund will then hold about 16% of Achim Donitz shares, and the 1,200 other shareholders in Dan will collectively hold 17% of the company's shares.
Ronen Yafo, CEO of Donitz Elad, stated:
"The signing of the memorandum of understanding for the acquisition of Dan Nadlan is another significant strategic move for Donitz Elad. Subject to the completion of the deal, we expect to significantly expand the scope of our operations and strengthen our position as a leading company in the Israeli real estate market. Dan Nadlan has a high-quality portfolio of land and income-generating assets in strategic locations, and we believe that combining these assets with our development and management capabilities will create significant value for shareholders. Donitz Elad has a proven track record in executing significant merger deals, which will be an important advantage in realizing the synergies inherent in this process."
Yair Efrati, partner at the Value LBH fund and CEO of Dan Nadlan, added:
"We view the merger as a strategic move that will unlock value through economies of scale and accelerate the growth of the merged company. Dan Nadlan will add a significant layer of land with development potential, which is expected to mature in the coming years, alongside existing projects and income-generating assets in high-demand areas."
Dan Nadlan's real estate portfolio includes assets of significant scale in high-demand areas. In the investment real estate sector, Dan holds assets in Shikun Dan in Tel Aviv, the Timna complex in Holon, Tower C in the LYFE complex in Bnei Brak, the "Avis parking lot" in Ramat Gan, and more. It also owns the ERA project in Hadera and the "SEVEN SEAS" project in the Sde Dov complex in Tel Aviv.
The deal comes about four years after the successful merger between Achim Donitz and Elad Israel Megurim Hadasha, which led to the establishment of the Donitz Elad group. The extensive experience gained in that process will serve as a stable foundation for integrating Dan's management team and professional expertise into the existing Donitz Elad platform.
