Another non-bank financing company on the way to Tel Aviv: Obligo acquires Luzon Real Estate

Less than three years after acquiring control of the hawk skeleton hawk hotel and entering residential real estate activity, businessman Amos Luzon sells the company back to a group of investors that includes its former owners and managers. The company, which has since changed its name to Luzon Real Estate, will be sold in a similar deal The one she bought was a reflection of a NIS 5 million premium on the cash she would have left after selling her real estate business.

Luzon Real Estate is a subsidiary (69.56%) of the Luzon real estate and infrastructure group, controlled by Amos Luzon. The Luzon Group today announced that it had entered into a conditional agreement to sell 50.01% of Luzon Real Estate shares to the hands of the Oligo AP Advance Finance Company, which deals with the provision of guaranteed off-bank credit for real estate assets.

Obligo shareholders are Tony Elisha (40%), Jacques Amoyal (20%), Merav Sigal (25%), Zvi Itzik (10%) and Moshe Gdanski (5%). Elisha and Amoyal were among the controlling shareholders of Luzon Real Estate Company (then called Hawk Hotels) prior to its sale to the Luzon Group, while Itzik and Gdanski served in its chairman and CEO positions at the time.

They are now acquiring control of the stock exchange company back from Luzon, with the aim of concentrating on its non-bank credit operations. According to the deal’s outline, Oligigo will purchase Luzon Real Estate’s controlling shares in exchange for the amount of the proportion of the purchased amount (ie 50.01% of the shares) in cash that will be in Luzon at the closing date, plus a total premium of NIS 5 million. Luzon during 2017 the same bourgeois skeleton from the hands of a hawk group (controlled as stated by some of the current purchasers).

At least NIS 75 dictionary and sale of all activities

The closing of the transaction is conditional on a number of conditions, most notably that the net cash amount in Luzon Real Estate Fund on the closing day will be at least NIS 75 million, so that the consideration for the shares purchased will be at least NIS 42.51 million.

The agreement also states that completion of the transaction is contingent on the sale of all existing Luzon real estate activities, so that the company will become a cash-rich stock market skeleton, as well as conditional on the sale of Luzon Group’s remaining real estate shares (19.55%). The existing activity includes 50% of the shares of the Lugano residential real estate project in Judea, as well as shares of the cannabis company Panaxia Israel with a market value of approximately NIS 3 million.

The deal also states that in addition to the cash proceeds, the Luzon Group will receive the full rights and obligations of Oligo, in connection with a loan recently granted to two companies under the control of Yehuda Maimon – Polaris Element dealing with checks and PC Global deals dealing with checks. This is a loan of NIS 7 million for a period of up to three years, which can be redeemed for 50% of the shares of each of the two companies. Under the same loan agreement, Obligo pledged to provide the same two additional on-demand loan companies of NIS 15 million for a period of up to three years. In response to the announcement, Luzon Real Estate’s share price jumped 25% today to a price reflecting a company value of NIS 67 million.