Sources inform "Globes" that Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) and British-Israel of are set to join together to acquire the Ramat Aviv mall from Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK), but that talks have hit a snag.
While the sides have met, talks with Africa-Israel have broken down over the valuation of the mall, and concerns by the buyers that the mall will see lower sales.
Migdal currently owns 26.6% of the mall, and Africa-Israel owns the rest. In the first stage of the proposed transaction, Migdal would buy Africa-Israel's stake. In the second stage, Migdal was to sell a 50% stake in the mall to British-Israel, and British-Israel would pay Migdal with shares in British-Israel. Management of the mall would be turned over to British-Israel, which manages 17 malls in Israel.
So far, Africa-Israel does not want to lower its NIS 1.7 billion valuation of the mall. The mall was appraised with a value of NIS 1.3 billion in 2007, which is about what the buyers want to pay.
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009