Institutions commit to $154 mln in Gazit-Globe share offering

Wed Dec 30, 2015 2:41am EST
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TEL AVIV Dec 30 (Reuters) - Gazit-Globe, Israel's largest real estate investment company, has accepted 600 million shekels ($154 million) in precommitments from institutional investors in a planned share offering in Tel Aviv.

The company said on Wednesday it offered in a tender units of 10 shares and accepted precommitments to buy 1.69 million units, or 16.9 million shares. Of this amount, 850,000 units were allocated to Norstar Holdings Inc, which owns 50.25 percent of Gazit-Globe.

The price set in the tender was 35.5 shekels a share.

Gazit-Globe said the public offering was still subject to receipt of certain approvals and that the final price would be determined in a public tender.

The company, whose share price has fallen 25 percent this year to close at 34.62 shekels on Tuesday, has a market value of 6.2 billion shekels.

It operates in the United States through Equity One and in Canada through First Capital Reality Inc . It is the largest shareholder in Finland's Citycon , controls shopping mall developer and is expanding in Brazil. ($1 = 3.8965 shekels) (Reporting by Tova Cohen)