Cielo Blu shareholders approve takeover by Tshuva and Zvida

3 weeks ago 52

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Yitzhak Tshuva and David Zvida will reach a 47% holding in the real estate company in exchange for an injection of NIS 110 million.

The shareholders of Cielo Blu (TASE: CILO) (formerly Hanan Mor), mostly the financial institutions that took over the company as part of its debt settlement, have approved by a large majority the allocation to companies controlled by Yitzhak Tshuva and David Zvida of shares that could bring them in two stages to a holding of 47%, in return for the injection of NIS 110 million. Cielo Blue deals in construction of residential and income-producing real estate.

Tshuva and Zvida said in response to the vote: "We thank the shareholders for their big vote of confidence. We believe in the company and its latent potential."

In the third quarter, Cielo Blue made a huge net profit as a result of the completion of the debt settlement, and switched to positive shareholders’ equity of NIS 231 million. The company, which last year buckled under debt of nearly NIS 3 billion, was transferred under the debt settlement to its creditors, and now has two new controlling shareholders in Tshuva and Zvida.

Published by Globes, Israel business news - en.globes.co.il - on December 5, 2024.

Tamar Matsafi, Eyal Izhar