Fishman real-estate companies announce joint
AIM flotation - An analysts' assessment determines
that the aggregate market value of Fishman's assets
in Russian is $765 million
On Thursday evening, the three real estate companies
owned by Eliezer Fishman Jerusalem Economic Corp.
(TASE:ECJM) (JEC), Industrial Buildings Corp. (TASE:
IBLD) and Darban Investments Ltd. (TASE: DRBN), announced
that they are working towards a public offering of
30 percent of the shares of joint company Miriland
Development Corporation on the London Alternative
Investment Market (AIM).
The joint company distributed confidential analyst
reports among potential international investment institutions.
The reports were prepared by research analysts at
the investment banks underwriting the issue, including
Merrill Lynch and Credit Suisse. The most significant
detail in the reports is the valuation of the joint
company's assets in Russia. The assessment determines
that the aggregate market value of the assets in Russia,
including an asset whose acquisition has not fully
completed, is $765 million. The company also reported
that the remainder of its liabilities for the completion
of acquisitions is currently $25 million.
It was also reported that Industrial Buildings CEO
Moshe Morag would be appointed CEO of Miriland. If
the offer indeed takes place, employees and certain
advisors would be granted options at an exercise price
corresponding to the company's share price on the
date of the offer. If these options are exercised,
company employees will hold 4.5 percent of the general
share capital (before the money).
It is believed that the offer of the joint assets
in Russia on the AIM will occur at the end of 2006
or the beginning of 2007. An arrangement between the
real estate companies determined that JEC would hold
40 percent of the join company (before the offer),
subsidiary Industrial Buildings would also hold 40
percent while Darban would hold 20 percent. If 30
percent of the company is issued to the public, Fishman's
companies will be diluted to 28 percent, 28 percent,
and 14 percent respectively.
Eliezer Fishman is the controlling shareholder of
"Globes"
