Tycoon Alfred Akirov Eyes Alrov Delisting and Clal Control at 85
At 85, Israeli tycoon Alfred Akirov is considering taking Alrov private due to low stock liquidity, a move that could also help him bypass regulations to gain control of Clal Insurance.
At 85, Israeli real estate tycoon Alfred Akirov is far from slowing down, raising the possibility of taking his company Alrov out of the stock exchange while continuing his long-term battle to secure control of Clal Insurance.
Akirov points to low public float, insufficient liquidity, and a market valuation that is far below the company's actual worth as the primary reasons for potentially delisting Alrov. According to him, "There is no liquidity in the stock, and with the low public holding rate, it just doesn't work. The stock does not reflect the value, but trades at 70%-80% of equity," he said in an extensive interview with Globes.
Overcoming Regulatory Hurdles
Turning Alrov into a private company could remove a major regulatory barrier related to the Concentration Law. Akirov describes the core issue simply: "If today I want to buy another 15% and achieve control, I cannot do it in a public company."
Despite his long-running struggle surrounding Clal Insurance, Akirov still defines himself first and foremost as a real estate man. One asset that exemplifies his long-term investment philosophy is located in Herzliya, where he purchased an 18-dunam plot in 1979 for $1 million.
Akirov recently received approval to build two towers featuring 180 apartments and commercial spaces on the remaining six dunams of the plot. He estimates the current value of the land at 400 million shekels.
Long-Term Rental Strategy
Rather than selling the newly approved apartments, Akirov plans to hold them for long-term rentals spanning 18 to 20 years. The decision is driven by tax considerations as well as real estate strategy, noting that selling the property would generate a massive tax liability, whereas renting allows for a reduced corporate tax rate of 10%-11% under approved enterprise status.
Akirov remains unfazed by the current weakness in the housing market, emphasizing the constant demand driven by population growth and high-tech exits creating hundreds of new millionaires.
Refusing to consider retirement, Akirov stated: "I cannot go into retirement, if I go into retirement I get sick." His son George already works in the company and is slated to continue his path, while the prospect of selling Alrov is met with a short and decisive answer: "Never."
