More Investment House Acquires 11.7% Stake in Gaon Group for 100M NIS
More Investment House has acquired an 11.7% stake in infrastructure firm Gaon Group for 100 million shekels. The deal values the company at 850 million shekels as Gaon Holdings reduces debt following robust financial results.
More Investment House has acquired an 11.7% stake in Gaon Group, which operates in water, gas, and fuel infrastructure, for approximately 100 million shekels. The transaction was executed at a price of 18.7 shekels per share, reflecting a valuation of about 850 million shekels for Gaon Group, compared to a market cap of roughly 934 million shekels at Friday's market close.
Under the deal, More acquired shares worth about 74.8 million shekels from the parent company, Gaon Holdings, which will retain a 55.3% stake in Gaon Group following the sale. Additional shares, valued at approximately 25.1 million shekels, were purchased from Challenge Holdings and Guy Regev, CEO of Gaon Group and one of the controlling shareholders. Gaon Holdings intends to use the proceeds, inter alia, for the early redemption of its Series H bonds, aiming to reduce debt and improve financial flexibility while maintaining control over Gaon Group.
The transaction follows a sharp surge in Gaon Group's stock, which last September crossed a market valuation of one billion shekels for the first time. At the end of March 2025, the company traded at a valuation of less than 200 million shekels, but since then it has benefited from improved business results and growing investor interest. The rally was also supported by a change in control at Gaon Holdings in April 2025, when Ofer Gilboa, owner of cargo airline Challenge Airlines, and Guy Regev acquired control from previous shareholders, including Viola Fund.
Gaon Group concluded the first half of 2026 with revenues of approximately 389.8 million shekels, marking an 11% increase compared to the same period last year. EBITDA totaled about 69.4 million shekels, and equity stood at roughly 500 million shekels at the end of June. Operating profit rose 32% to about 50 million shekels, and net profit attributable to shareholders surged 56% to approximately 28 million shekels. Gaon Group manufactures and markets piping, valves, and spigots for water, sewage, gas, and fuel transport, alongside infrastructure project execution and waste management systems, operating across three core divisions: industry, projects, and trade.
