Alfred Akirov on track to take Alrov private: offers ₪322.41 per share in full tender offer

Alrov Properties and Lodging controlling shareholder Alfred Akirov announced his intention to issue a full tender offer for the company's shares in order to take it private. Meanwhile, an activist fund launched a campaign to replace the board at UMH, and Nextgen Biomed is facing a lawsuit.

Alfred Akirov plans to take Alrov Properties and Lodging private via a full tender offer at a valuation of about ₪3.5 billion. Simultaneously, hedge fund Erez Asset Management launched an activist campaign at real estate company UMH Properties. Also in the background: a lawsuit and attachment order against Nextgen Biomed, and the appointment of a new director at Kenon Holdings.

A dramatic announcement on the capital market: Akirov Holdings, controlled by businessman Alfred Akirov, announced its intention to issue a full tender offer to acquire all public shares in real estate and hotel company Alrov Properties and Lodging, with the aim of delisting it from the Tel Aviv Stock Exchange. The offered consideration stands at ₪322.41 per share in cash, a price reflecting a certain premium over the market price and a company valuation of approximately ₪3.5 billion. If the offer is completed, the company's shares will be delisted from trading, but it will remain a reporting corporation due to the bond series it has issued.

Akirov's move has already garnered significant support: Mor Provident and Pension Funds, an institutional entity holding a substantial stake in the company's shares, announced its intention to accept the tender offer should it be published. The success of the tender offer is conditioned on a response rate that brings the offerors to hold over 95% of the company's shares, which will allow them to execute a squeeze-out of the remaining shares. It should be noted that as of this date, an official prospectus has not yet been published, and the final offer details are subject to change.

In another arena, this time in the US, hedge fund Erez Asset Management, which holds about 5% of the shares of income-producing real estate company UMH Properties (also traded in Tel Aviv), launched an activist campaign against the company's management. The fund launched a dedicated website (saveUMH.com) and published a presentation under the title "Case for Change," detailing what it claims are management failures. The fund intends to work toward replacing board members and rallying shareholder support ahead of the upcoming annual meeting.

Meanwhile, the legal turmoil surrounding biomed company Nextgen Biomed continues. The company and its CEO, Harel Reshtik, are facing a ₪2.35 million lawsuit and a temporary attachment order issued against their assets. The lawsuit, filed by Ulir Trade and its owners, relates to allegations regarding the non-completion of a share allocation transaction. Nextgen Biomed rejects the claims outright, arguing that this is a "frivolous lawsuit" based on "false factual foundations," and that the delay stemmed from the plaintiffs' demand to register the shares in violation of agreements. The company is working to overturn the attachment order.

Alongside the major dramas, several other events took place on the stock exchange. Holding company Kenon Holdings announced the appointment of Duncan J. Bullock as an external director. Bullock brings with him 17 years of experience as a finance and investment professional in the energy sector. Amos Luzon Group controlling shareholder Amos Luzon continued to express confidence in the company by purchasing additional shares for about ₪268,000, increasing his holding to approximately 57.59%. At Payton Industries, the Yativ family cemented its control with the extension of the terms of office of David Yativ as chairman and Doron Yativ as CEO at subsidiary Payton Planar Magnetics. Finally, real estate company Ramot In The City reported increasing an existing loan by about ₪6.5 million in lieu of cash interest payments, in a move known as PIK interest, and Delek Global Real Estate updated on an interest payment of approximately ₪2.28 million to Series E bondholders.