The negotiations for the sale of Eliezer Fishman's holding in Jerusalem Economy Ltd. (TASE:ECJM) (JEC), representing about 40% of the company's share capital and 45% of the voting rights, took an unexpected turn last night. Beny Steinmetz will not buy the shares, which are mortgaged to Bank Leumi (TASE: LUMI), and they will be sold instead to a company controlled by the Nakash brothers.
The cause of the switch was Steinmetz's delay over the final details of the negotiations while the markets were in turmoil creating increased uncertainty about global economic growth. Leumi therefore decided to introduce the Nakash brothers swiftly into the picture and sell them the shares.
Jerusalem Economy Ltd. is active itself and through subsidiaries in income producing real estate in Israel and overseas. Besides Mirland Development Corporation plc (AIM:MLD; TASE: MRLD.B1), it has controlling holdings in Industrial Buildings and Darban Investments. The company has bond debt of NIS 1.7 billion.
Meanwhile Jerusalem Economy has announced the sale of a Canadian property, Woodbine Mall, for CA$ 114 million. The asset is recorded on Jerusalem Economy's books at CA$118 million.
Eliezer Fishman is the controlling shareholder in "Globes".
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2015
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