Aaron Frenkel in talks to reach 38% of seafarers; Nahmias...

After rising to a 25.4% stake in Gev-Yam, And shook the whole picture of contacts for the acquisition of control of DSK, Aharon Frenkel maintains contacts with at least two other entities to purchase additional shares of Gev-Yam, and to gain control of the real estate company.

Calcalist has learned that Frenkel is negotiating the purchase of the holdings of Haim Katzman and Gazit Globe, over 4% in Gev-Yam, as well as Clal Insurance in the amount of 9% in the company. And make it a de facto controlling shareholder in the company with the largest amount of shares.

In fact, for Frenkel, it is enough to buy one of the entities to cause a dramatic turnaround in the tender for the sale of control of the subsidiary, DSK. The dramatic development distances IDB’s bondholders from the sale of controlling shares (70%) in DSK. If they increase their holdings to more than those of properties and buildings (29.9%), Tzachi Nachmias is expected to withdraw from the proposal he submitted to the collectors andloyal On behalf of the court, to purchase shares for NIS 950 million.

Although Nachmias pledged NIS 95 million in a bid he submitted, according to various legal interpretations, his bid officially expired on October 27, that is, last week. As soon as Elstein submitted an identical offer to Nachmias ‘proposal, Judge Hagai Brenner ordered not to implement Nachmias’ previous proposal, which spoke of two main limitations: NIS 40 million between bidders and bidders, and NIS 15 million in compensation if Mega Or’s group, headed by Nachmias, You will not be the buyer in the end. Elstein also opposed the approval of Nachmias ‘proposal in the new building last week, without the first limit and with compensation of only NIS 10 million, and the judge asked for the trustees’ response to the objection within five days ending today. This comment has not yet been given.

In fact, the market estimates that Nachmias may retire from the race to acquire control of DSKS, even if Frenkel does not increase his holdings in Gev-Yam before the end of the auction.

It was already reported yesterday in Calcalist that Nachmias has no intention of raising his offer. Now, with the development at sea, it is hard to believe that Nachmias will also stand behind the current proposal, which is becoming less economically viable. DSKS’s main asset is holding back-to-back chains, and if Nachmias had won the bidding he would have led to the purchase of more back-to-back shares to establish control. After Frenkel’s move, this is a more difficult step.

Elstein, who did not give the holders the right to confiscate his deposit in the event of a withdrawal, himself is expected to continue the acquisition process, but Nachmias’ apparent hesitation increases Elstein’s power over the holders who have so far felt on the horse in dealing with him, waving a winning ace for them, Nachmias. The upheaval created yesterday following Calcalist’s exposure of Frenkel’s move preyed on the cards among the holders. Holders of the 14th series, to whom the debt stands at NIS 890 million, and who hold a lien on DSKS shares, are in a relatively less bad condition. Even if they do not meet the 950 million shekels promised in the current proposals, they will meet with several hundred million shekels, and in any case her haircut will be relatively small.

The hard hit is expected to be taken by the holders of the ninth series, which is not guaranteed. These were supposed to receive the excess amount from the consideration that is going to be repaid for the fourteen bonds, that is, anything beyond NIS 890 million. If the sale of DKSH yields a lower amount, then the 14th series will be shared with the owners of the smaller series T and Tu, in exchange for the sale of IDB’s assets – Israir, Modi’in and Real Estate in Las Vegas. In such a case, the haircut for Series I will be more than NIS 600 million and possibly even NIS 700 million out of a debt of NIS 900 million towards them.

The two biggest victims of holding T-bonds are the Alpha and Cypress funds, with the latter leading the aggressive line towards Elstein. Gil Deutsch and Roni Biram, owners of the Cypress Fund, probably sweated more than anyone else yesterday at Frenkel’s move. This is because Frenkel, in parallel with his experience To purchase the shares of Gev-Yam, he negotiated with the holders to submit a competing bid for the acquisition of control of DSKS, but in the end he turned out to be the most shrewd of them all. The holders lost the third bidder, a loss that joins another retired bidder, the stock exchange structure lacks a core of control.

There are now Elstein and Nachmias left in the game, who as mentioned are hesitant and will have to make decisions in the next two days, even if he does not know what Frenkel’s steps are. Nahmias may also try and make a deal to buy Clal’s holding back. Such a move is the only one that can save the holders, since he will buy the shares in Clal’s possession, and will win a bid on DSK, he will have an advantage over Frenkel.