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Keystone has completed the move to acquire up to 60% of Egged shares - Walla! Of money

2022-05-09T07:41:43.979Z


At the end of one of the largest competitive proceedings in Israel, Keystone is nearing the closure of the acquisition of up to 60% of Egged's shares: the clerk advances an amount of NIS 350 million


Keystone has completed the move to acquire up to 60% of Egged shares

At the end of one of the largest competitive proceedings in Israel, Keystone is nearing the closure of the acquisition of up to 60% of Egged's shares: the clerk made an advance of NIS 350 million, completed a financial closure to finance the deal and met Egged's conditions for declaring itself a winner.

The transaction is subject to the approval of the shareholders and the regulator

Walla!

Of money

09/05/2022

Monday, 09 May 2022, 10:14 Updated: 10:28

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The Harit Keystone Fund, which invests in infrastructure assets, reports that in accordance with the terms of the competitive procedure for purchasing Egged shares and the letter of conditions received by Egged for declaring it the winner of the competitive procedure, a total of NIS 350 million was deposited in a trust account.



Keystone financed, from its sources (including by withdrawal from an existing credit facility) about 74% of this amount, with the balance provided by the Teachers' and Kindergarten Fund for the purchase partner.



Prior to depositing the down payment, Keystone established a designated corporation for the purpose of purchasing Egged shares, which entered into a financing agreement with a banking consortium led by Bank Leumi and Bank Mizrahi, to which equity will be injected by the partners in the designated corporation.

The financing agreement regulates the receipt of loans amounting to up to NIS 1.44 billion, which constitutes the balance of the amounts required for the corporation designated to purchase Egged shares.



The designated corporation also signed the agreement to purchase 50.01% to 60% of Egged shares, which also includes put options for Egged shareholders to sell the balance of their holdings in it, according to the same company value according to which the consideration for Egged shares was determined, in accordance with the agreement.



In doing so, Keystone fulfilled all the conditions required on its part to declare it a winner in the competitive process.


In view of the completion of the conditions for the company to be declared the winner of the competitive process, Egged will convene a general meeting of its shareholders to approve the sale of Egged shares, in a manner that will take place by the end of May 2022



. .


Attorneys Itai Geffen and Ronit Rosenstein-Barel of Gornitzky & Co., Tasc (Financial Advisers) and PwC accompany Kiston in the transaction.

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Opportunity for the public to invest in infrastructure and public transportation

Keystone is an Israeli REIT fund for infrastructure investment established in 2019, against the background of the recommendations of the Committee for the Promotion of the Establishment of Traded Funds for Investment in Infrastructure.

Keystone was issued about a year ago and is traded on the Tel Aviv Stock Exchange, raising about NIS 1.4 billion (in capital and debt), which it has invested and is still investing in a portfolio of income-producing and diverse infrastructure assets.



Since its inception, Keystone has proven its capabilities and invested in many infrastructure projects including: Ashkelon Desalination Company, operator of Highway 6 and the Carmel Tunnels, Israel's advanced IPM power plant, Sunelpower Renewable Energy Company, global fiber optic deployment project, and a well-owned company.



The company also participated in the provision of capital for the Orot Yosef power plant project and is also involved in the provision of capital for the closure of the Hagit power plant.

These investments have been very carefully scrutinized by Keystone and its people in a way that allows its investors to get a decent return, and a steady income stream.



Keystone's founders are entrepreneurs Roni Biram (who serves as chairman of the board), Dr. Navot Bar (who serves as CEO and director) and Dr. Gil Deutsch.

The Entrepreneurs Behind Keystone: Dr. Gil Deutsch, Chairman of the Board Roni Biram CEO Dr. Navot Bar (Photo: Shai Shabro)

Navot Bar, CEO of Keystone

: "Public transportation is one of the critical national infrastructure industries for the functioning of the economy, and its importance for the development and growth of the Israeli economy is growing.

Despite the benefits of investing in infrastructure, until recently these investments were reserved only for a limited and concentrated number of players.



Investing in national and quality infrastructure like Egged is now becoming accessible to the general public through Keystone.


Keystone's offer to buy shares in Egged, Israel's national transportation company, was made after an in-depth and thorough examination during which we were exposed to a fine and quality company, with proven capabilities and quality manpower, from the level of employees and founders to the management team.



Keystone's decision to submit the bid for Egged shares was made as part of a realistic analysis and out of a responsibility to bring value to its shareholders.

Egged's pricing is a testament to the professionalism, capabilities, knowledge and experience of Egged, its management, employees and founders.



The demands made by Egged's management immediately after the results of the competition were published were acceptable and understandable to Keystone, and evidently Keystone was able to meet them and prove its capabilities in a very short time.

Keystone brings with it Egged's financial strength and strategic capabilities that will ensure the continued development and leadership of Egged, which will benefit Egged, the public, its shareholders and Keystone investors. "

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Source: walla

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