Nati Saidoff Sells 4% Stake in Shikun & Binui for NIS 450 Million
Shikun & Binui controlling shareholder Nati Saidoff sold a 4% stake for NIS 450 million, retaining 30.78% ownership. The stock rose 2.6% following the announcement, despite a decline in Q2 gross profit.
Sources close to Nati Saidoff, the controlling shareholder of Shikun & Binui, state that he has no intention of selling additional shares in the foreseeable future. The remarks follow the decision over the weekend to sell a 4% stake in the company for NIS 450 million. Saidoff now holds a 30.78% stake in the company.
Market Reaction and Valuation
The decision to sell a portion of the shares did not deter investors. On Friday, the stock rose by 2.6%, recovering some of its recently erased value. The company's market capitalization stands at NIS 11.64 billion, with the share price at NIS 11.97, marking an 8.5% increase since the beginning of the year.
In the world of corporate finance, share sales by a controlling shareholder are often accompanied by concerns over management's confidence in the company's future. However, the stock's positive reaction indicates that investors interpreted the move selectively—as a partial liquidation of assets for personal reasons while maintaining a solid controlling core.
Company officials also assert that Saidoff remains fully committed to the work plans, the optimization of the company's infrastructure and real estate portfolio, and believes in future value creation.
Major Energy Deal and Financial Performance
Shikun & Binui, managed by CEO Amit Birman, recently signed a definitive agreement with Generation Capital for the acquisition of Shikun & Binui Energy. This occurred approximately two months after the signing of the memorandum of understanding.
The transaction consideration was set at NIS 4.45 billion, which includes an additional NIS 150 million due to the prolonged period since the initial agreement. The transaction is still pending numerous regulatory approvals.
The company's second-quarter revenue stood at approximately NIS 2.3 billion, compared to NIS 2.4 billion in the corresponding quarter last year. Revenue for the first half of the year totaled approximately NIS 4.4 billion, down from NIS 4.6 billion in the same period last year.
The decline in revenue is primarily attributed to a decrease in apartment deliveries in Europe and the erosion of the US dollar exchange rate. Gross profit in the second quarter of the year amounted to NIS 150 million, compared to NIS 459 million last year. Gross profit for the first half of the year was NIS 338 million, compared to NIS 791 million in the first half of last year.
