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Thursday, March 28, 2024

Nakash Brothers Buy Fishman’s Jerusalem Economy Stake

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From Right: Avi , Joe & Ralph, Nakash Brothers.

Over the weekend a sudden turn was taking in the negotiations for the sale of Eliezer Fishman’s stake in Jerusalem Economy Ltd., which represents approximately 40% of the company’s share capital and 45% of the voting rights. The Nakash brothers, the owners of the Jordache jeans brand, snatched up the shares that are mortgaged to Bank Leumi for 350 million shekels, or about $89 million.  The stake was on the way to being sold to diamond mining magnate Beny Steinmetz for 350 million to 400 million shekels when plans suddenly changed.

Steinmetz’s postponement regarding the negotiations final details are what led to the sudden switch. The delay was too risky for Leumi considering the markets unrest which makes for unsure global economic growth. Therefore, the bank allowed the Nakash brothers to quickly come on the scene and scope up the shares.

A spokesman for Steinmetz told Haaretz, ““Steinmetz chose not to carry out the transaction on the terms proposed by Leumi and accepted by the Nakash family. Jerusalem Economy is a good company that owns good assets. Steinmetz wishes the Nakash family success, for the benefit of the company’s creditors and shareholders.”

Globes reported, “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.”

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