In a dramatic development at Israeli infrastructure and real estate company Shikun & Binui (TASE: SKBN) CEO Tamir Cohen has quit after controlling shareholder Naty Saidoff forced his hand. The company's board of directors is now meeting to discuss the matter. Cohen plans to form a consortium of investors to try and acquire control of the company.
Today's events unfolded after Saidoff appointed himself to the board last week as a first step before becoming the company's chairman, in order to become more involved in the day-to-day running of the company and strengthening his influence.
In his letter of resignation, Cohen wrote that he had decided to leave, "After six years of activity, in which we immeasurably improved the company's financial situation, promoted many projects, and acquired significant activities for the company."
He added, "Recently special circumstances have arisen in which I have the impression that I have the ability, together with other investors, to purchase some or all of the controlling shares in the company, which I believe can grow significantly. At the same time, the fact that the controlling owner has decided to be more involved in the management of the company led me to the conclusion that it would be right and appropriate at this stage for me to move forward on this, while I am out of the company."
Shikun & Binui's share price has fallen 65% from its record price in May 2021. The company has taken on debt for diverse projects, including the purchase of a huge plot in Tel Aviv's Sde Dov for the construction of long-term rental housing.
Shikun & Binui's controlling shareholder Nati Saidoff, who acquired the control from Shari Arison in June 2018, made harsh comments in the media recently about the decision to bid for the Sde Dov tender and other matters. The performance of the stock, which continued to fall due to the company's enormous leverage that with the rise in interest rates is gradually suffocated it, was among the reasons that led Saidoff to push for change and push Cohen out of the company.
Published by Globes, Israel business news - en.globes.co.il - on June 30, 2024.
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