Tzachi Abu remains determined to take over G City
Tzachi Abu remains determined to take over G City despite resistance from Chaim Katzman. Abu's Ari Real Estate, with partners Yaron Adiv and Kidan Dahari, signed an agreement to buy 26% of G City from Katzman's Norstar Holdings at a valuation of NIS 2.55 billion, with an option for an additional 7%. Katzman has taken steps seen as hostile, including advancing the appointment of Keren Kalifa as CEO and issuing a new bond series. Abu's Ari Real Estate share price has fallen about 25% since the deal was announced.
Tzachi Abu remains determined to take over G City, the income-producing real estate company formerly known as Gazit Globe, despite apparent resistance from its current controller, Chaim Katzman. The deal, signed just a month ago, involves Abu's Ari Real Estate and partners Yaron Adiv and Kidan Dahari forming a partnership to buy 26% of G City from Katzman's Norstar Holdings at a valuation of NIS 2.55 billion, with an option to acquire an additional 7%, bringing their stake to 33% and reducing Norstar's to 21%. Since the agreement, Katzman has taken steps that appear aimed at thwarting the deal. These include convening a shareholders meeting to advance the appointment of Keren Kalifa, considered his right-hand person, as CEO from February 2027 to October this year, with a generous golden parachute. He also issued a new NIS 260 million bond series despite G City having over NIS 1 billion cash, and allocated shares to his son-in-law Zvi Gordon. A source familiar with the deal told Globes that if Katzman thought Abu was like Barak Rosen, he made a big mistake, referring to a previous failed takeover attempt. Abu's Ari Real Estate, whose share price has fallen about 25% since the deal was announced, has made clear it intends to exercise the option and acquire control. The deal is subject to Competition Authority approval, and Katzman has the right to withdraw after three months if approval is delayed.