Morris Wilner Increases Stake in Heachsharat HaYishuv to 14.13% and Explores Joint Control
Jewish-American businessman Morris Wilner has increased his stake in Heachsharat HaYishuv to 14.13%, purchasing shares at 40 NIS. He has held meetings with controlling shareholder Ofer Nimrodi regarding potential joint management.
Jewish-American businessman Morris Wilner is significantly increasing his holdings in Heachsharat HaYishuv shares. Wilner purchased 7% of the company's shares, some from Menora Mivtachim, reaching a holding of 14.13%. Wilner's series of purchases is being made at a fixed price of 40 NIS per share, the price at which it is traded. He purchased 3.3% from Menora, leaving Menora with 6.24%.
Wilner, who continues to hold 5.7% of the real estate company Gav-Yam worth about half a billion NIS, intends to continue increasing his stake. He told Calcalist that he is mainly impressed by the company's Seven Stars Mall in Herzliya, but also by its other assets. Calcalist has learned that Wilner, who currently resides in Jerusalem and divides his time with New York, has met more than once with controlling shareholder Ofer Nimrodi. The meetings raised the possibility of purchasing control of Heachsharat HaYishuv from Nimrodi, or at the very least entering into joint control, whether by purchasing part of Nimrodi's shares or by continuing purchases on the market.
Nimrodi, according to sources familiar with what is happening at Heachsharat HaYishuv, is not interested in selling control but did not rule out the possibility of joint control in conversations. In any case, according to those same sources, there are currently no negotiations on the matter. Heachsharat HaYishuv, controlled by Nimrodi, holds and develops income-producing assets in Israel and Poland alongside activity in the urban renewal sector through its subsidiary, Hachshara Itadshut. The company's market value currently stands at about 1.6 billion NIS, after its stock rose by about 15.6% in the last year but has been static since the beginning of the year.
Wilner's main business activity is concentrated in the USA, where he built extensive operations in the field of commercial real estate and multi-family housing. He lived in Florida and also holds a stake (10%) in Arie Kotler's gas station company, ARKO, where he previously served as chairman of the subsidiary GPM. He told Calcalist over the weekend that he does not rule out the possibility of asking to be appointed as a director at Heachsharat HaYishuv, but insisted that his investment is financial: "I love real estate and want to deepen my hold on real estate in the country."
In July, it was reported in Calcalist that Wilner was the buyer behind two large transactions recently carried out in Hachshara stock, totaling about 118 million NIS. In the first transaction at the beginning of July, he purchased shares from The Phoenix for about 73 million NIS. Two weeks later, he made another purchase of the company's shares for about 45 million NIS. In both transactions, Wilner paid a price of 40 NIS per share and reached a 7% holding in Hachshara. Nimrodi holds 52% of Hachshara's shares, and even if he sells 7% of his shares to Wilner, he will still remain the controlling shareholder.
Heachsharat HaYishuv is a fairly sleepy company business-wise, which has not carried out material transactions in recent years. However, at the beginning of the month, a dramatic move occurred in its subsidiary, Hachshara Urban Renewal. Within a few days, the stock plummeted by 41% and shed 330 million NIS from its value when an institutional body, estimated to be the Meitav Dash mutual funds, sold shares aggressively. The stock recovered part of the decline within a few days after Heachsharat HaYishuv — which holds 73% of the urban renewal company, which trades at a value of 700 million NIS — purchased its shares for 9 million NIS.
