Angel Bakery is selling a location in Jerusalem for 400 NIS


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Angel Bakery (Salomon A. Angel Ltd. (TASE: ANGL)) sold the location of its Jerusalem bakery to Secured Funds and other partners for NIS 400 million. Angel, which produces and sells bread and sells cakes, estimates that as a result of the deal, it will make a pre-tax capital gain of NIS 335 million, which is almost 60% more than the company’s market capitalization before the sale.

Angel also estimates that his sales tax liability will amount to NIS 70 million after compensating for the losses. Angela’s share price rose by more than 50% after notifying the stock exchange of the sale, bringing its market capitalization to NIS 330 million.

The Angel Bakery is located on nineteen dunes (4.75 hectares) in the Givat Shaul industrial zone near the railway and the new entrance to Jerusalem. Customers intend to promote the change of zones according to the Jerusalem Master Plan from an industrial zone to a residential, business and office one. Angel says he is making plans to move bakery activities to other locations, mostly to Lod and Netivot.

The share of secured funds in the business is 20%. Construction of the site is expected to begin in 2024, when buyers will decide whether to bring in more partners.

Angel controls Stybel Ltd. – Flour Mills, which holds 24% of the shares, and the Angel family, led by the company’s CEO Yaron Angel, who holds 23%. The company’s business has been declining for a long time, mainly, according to the company, due to the fall in the controlled price of bread.

Angela’s losses in the past five years (2016-2020) amount to almost 30 million NIS, and revenues in that period decreased by more than 15%, from almost 500 million NIS 2016 to 415 million NIS 2020 . years.

Recently published financial data for the first half of 2021 show that the decline continues. While revenue was stable at 205 million NIS, the company’s loss increased by almost 50% to 4.5 million NIS.

Prior to the growth caused by the current contract, Angela’s share price has fallen 33% since March 2020.

Posted by Globes, Israeli Business News – en.globes.co.il – August 26, 2021

© Copyright Globes Itonut (1983) Ltd. 2021


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