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Yakir Gabay & Amir Dayan – The €28 Billion Merger

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In 2015, real estate mogul Yakir Gabay, founder of AroundTown, had shares at a market cap of 1.6 billion euros (with a price per share at €3) in both the European stock exchange, Euronext (Paris-based), and the Frankfurt Stock Exchange, based in Germany. As of February this year – by no coincidence – AroundTown is close to a market cap of 14 billion euros and is now recognized as the largest publicly traded German commercial real estate company. The company is currently on its way to even greater growth as it’s expected to soon be named one of Europe’s largest real estate corporations.

In September 2019, Yakir Gabay sold shares to TLG Immobilien AG for €1.5 billion.  Shortly thereafter AroundTown began discussions concerning a prospective merging opportunity with TLG. The combined values of the merger amount to approximately €14 billion, yielding about €1 billion in revenue annually. The goal of the merger for both companies and investors is to exceed €100 million in synergies and to join the ranks of the Deutscher Aktienindex (DAX) companies. In the meantime, AroundTown has been working to earn an A rating from the S&P.

Amir Dayan, one of TLG’s largest shareholders, was quite confident in the merger, during the early preliminary stages. This was evident by the fact he signed an irrevocable contract to sell his TLG shares to AroundTown in exchange for newly issued AroundTown stock.

From this binding exchange, AroundTown was later able to secure 78% of TLG shares via the issuing of a tender-offer. This deal settled on February 19, 2020.

In analyses run by 14 research companies, AroundTown SA shares (ETR:AT1), at present, growing from €8.8 per share were granted a “Buy” rating. The researching agencies which conducted the study cover AroundTown’s corporate activities, including consideration of an average annual price target amid brokers to be above €9.

The corporation continues to expand its targets and market goals: Although it currently owns over 150 hotels – the majority of which are 4-star – AroundTown recently acquired a 5-star, 109 room Swiss hotel, Seehof Hotel in Davos. This property is added to the ranks of its current assets, all of which total out to about €6 billion. These properties include Hilton Berlin, Bristol Kempinski Berlin, Interconti Frankfurt, three London Hilton hotels, and Marriott Rive-Gauche Paris.

Incredibly, AroundTown is not the only success story Yakir has under his belt. Back in 2012, Mr. Gabay led the growth of Grand City Properties SA. In its infancy, Grand City Properties SA was traded at €2.7 – yet under the leadership and expertise of Yakir Gabay, the corporation has continued to see its stock rise significantly.  Over the years, the Grand City Properties stock (ETR:GYC) has consistently appreciated in value (to date, by over 800%!) and is currently traded at €24.

Grand City Properties is now recognized as the 4th largest Germany-based residential real estate company.  Based on its’ recent accumulation of more than 2500 apartments in London, there is little doubt that Grand City Properties will see the same boom in corporate growth that AroundTown has. The United Kingdom property purchases join Grand City Properties existing portfolio of over 80,000 apartments in Germany.

Insiders expect the recent UK property acquisitions to soon benefit from the Brexit, yielding huge profits for the company and investors.

Sharon was always fascinated by the workings of the human body and for her, nothing was better than being a health news journalist. By creating news pieces for the latest happenings in the world of human health, Sharon aims to create awareness among the readers to help them include better and healthy options in their daily lifestyle.

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