Housing & Construction confirms Arison selling holdings

Housing & Construction (TASE:HUCN) today confirmed press reports that Arison Holdings is negotiating to sell all its holdings, 35% of its share capital, in the construction company, to a third party.

H&C said it has no information on the third party. However, the candidate may be MPI, a Tel Aviv-listed joint company belonging to Shamrock Holdings and the Tel Aviv-listed company Marlaz, according to MPI's notice to the Tel Aviv Stock Exchange. MPI specifically stated that it is looking at several possible investments, including in Housing & Construction.

MPI reportedly offered to buy Arison's holdings in Housing & Construction at a company value of $400 million, while the company's market value is only $260 million.

Stanley Gold, president of Shamrock, submitted the offer in MPI's name, after meeting with Arison Holdings' chief shareholder, Shari Arison.

Arison has the biggest single holding in Housing & Construction. But the company's employees hold 33% of the company's equity and have a voting agreement.

Housing & Construction is the biggest construction company in Israel, operating through Solel Boneh and Shikun Ovdim, a residential builder. Its annual revenues amount to some NIS 3.7 billion, a third of which is generated outside Israel.

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