G City Deal Canceled - Tzachi Abu and Partners Will Not Acquire Control from Katzman

The G City deal has been definitively canceled. Haim Katzman informed Tzachi Abu last night of the cancellation, after reviewing the agreement between Ari Real Estate and Yashpro. The buyers are expected to receive back a deposit of 20 million shekels. The deal was supposed to include the purchase of 26% of G City shares for 661 million shekels, and later an additional 7%. Katzman was disappointed by the inclusion of Yashpro as a partner. Norstar's stock fell by 4.5%.

The G City deal has finally collapsed. Haim Katzman, the controlling shareholder of Norstar, decided last night to cancel the deal to sell G City shares to Tzachi Abu and his partners, and informed Abu of this in a conversation. The decision was made after Katzman reviewed the agreement signed between Ari Real Estate and Yashpro, controlled by Kiden Dahari and Yaron Adiv, which stated that the buyers would act to achieve control of the company as quickly as possible. Following the cancellation, the buyers are expected to receive back the 20 million shekel deposit they had placed. The deal was supposed to include the purchase of 26% of G City shares from Norstar for 661 million shekels, and later the purchase of an additional 7%. Katzman was disappointed that Abu brought in Yashpro as a partner, and said: "What have you done? I went to sleep with Rachel and woke up in the morning with Leah." Norstar's stock fell by 4.5% following the reports. Norstar needs the proceeds from the deal to repay its debts, and G City depends on the capital injection. Tzachi Sultan, chairman of Discount Capital Underwriting, was expected to receive a fee of about 10 million shekels if the deal had been completed.