The Zalkind brothers focus: Trying to exit Supergas and reduce exposure to Carrefour

The Zalkind brothers, controlling shareholders of Alco, are working to sell their controlling stake in Supergas and to list Carrefour Israel on the Tel Aviv Stock Exchange, while injecting capital into Electra Real Estate. Alco's stock has fallen 60% from its peak.

The Zalkind brothers, Daniel and Michael, controlling shareholders of the Alco Group, are pursuing a business focus strategy: they are trying to sell their controlling stake in Supergas, a home gas and electricity company, working to list the Carrefour Israel supermarket chain on the Tel Aviv Stock Exchange, and injecting capital into the subsidiary Electra Real Estate. Alco's stock has fallen 60% from a peak of about NIS 8 billion in March 2022 to a current value of NIS 2.7 billion, amid rising interest rates, a broad business spread where not all ventures succeeded, and a shift in investor sentiment. Supergas, acquired from Azrieli in 2019 and listed in 2020, has lost about 70% of its value and trades at a market cap of around NIS 450 million. Alco has hired Phoenix Underwriting and TASEC to evaluate a sale to a strategic buyer. Carrefour Israel, established on the basis of the Yainot Bitan chain, is expected to be listed at a valuation of about NIS 800 million, with an offering of at least half of Electra Consumer's holdings. Electra Real Estate, which manages investment funds in rental housing complexes in the US, has recorded a 65% decline since the beginning of the year due to high interest rates, and Alco participated in a NIS 200 million rights offering, injecting about NIS 94 million.