Israel Canada and Acro complete merger: The joint company is worth about half the planned value

Israel Canada and Acro have completed their merger, with Acro ending its run as a public company on the Tel Aviv Stock Exchange. The merged company is valued at approximately 5.5 billion shekels, about half the value estimated at the time of the announcement in February (around 10 billion shekels), following declines in the shares of both companies amid weakness in the real estate market.

The merger deal between Israel Canada, controlled by Barak Rosen and Assi Tuchmayer, and the Acro Group of Tzachi Arubov has been completed, and Acro has ended its run as a public company on the Tel Aviv Stock Exchange. The merged company is valued this morning at only about 5.5 billion shekels, about half the value estimated when the deal was announced in February this year, when it was estimated at about 10 billion shekels. According to the original agreement, Acro was acquired at a value of 3.1 billion shekels, reflecting a premium of about 10% over the market price. The consideration was set so that 60% of it would be paid in Israel Canada shares and 40% in cash, totaling about 1.24 billion shekels. Acro shareholders are expected to hold about 21% of Israel Canada shares. The sharp declines in the shares of both companies were recorded against the backdrop of weakness in the real estate market.