Gadi Dankner
Elran branches into Russia
Israeli real estate company is to invest $20 million in Russia's Pettinger Holdings, giving it 40% of the shares
Tel Aviv-based Elran Real Estate is branching out into Europe and is to invest some $20 million with Russian real estate developer Pettinger Holdings, Yedioth Ahronot revealed Wednesday.
Pettinger, which is registered in Cyprus, has various holdings in and around Moscow, and is controlled by Rashi Development, which is owned by Ron Atir, Yaron Rokman, Yoav Kaplan, Shalom Singer and Abraham Goldfinger, and is traded in the Tel Aviv stock exchange.
Elran, co-owned by Dori and Gadi Dankner, would gradually acquire 40% of Pettinger, buying 31.2% of the company's shares for $12.5 million at first and giving Pettinger a $5 million loan, with the option to convert the funds into company stocks.
Elran would be given the option to increase its holdings in the company by an additional 5% for $2.5 million more.
Pettinger's activities in Russia are said to be worth $40-$65 million.
Elran intends to change Pettinger's name to "Basilica" and name Gadi Dankner as chairman.
The company further announced its intention to by 50% of another Russian realtor named Fireford for an estimated $22.5 million.
