Angel Bakery sells location in Jerusalem for NIS 400 million

Angel Bakery (Salomon A. Angel Ltd. (TASE: ANGL)) has sold its Jerusalem bakery site to More Provident Funds and other partners for NIS 400 million. Angel, which produces and markets bread and markets cake, estimates that as a result of the deal, it will make a pre-tax capital gain of NIS 335 million, nearly 60% more than the company’s pre-sale market value. Engel also estimates that his tax liability on the sale will be NIS 70 million after compensating for losses. Angel’s share price rose more than 50% after the exchange was notified of the sale, bringing its market value to NIS 330 million. Angel Bakery is located on an area of ​​nineteen acres (4.75 acres) in the Givat Shaul Industrial Zone, near the light rail line and the new entrance to Jerusalem. Buyers intend to promote the zoning change under the Jerusalem master plan from an industrial area to a residential, commercial and office area. Angel says he is making plans to move the bakery’s business to other locations, especially in Lod and Netivot. The share of more provident funds in the transaction is 20%. Construction on the site is expected to begin in 2024, at which time buyers will decide whether to bring in more partners. Angel is controlled by Stybel Ltd. – Flour Mills, which owns 24% of the shares, and the Angel family, headed by the company’s CEO Yaron Angel, who owns 23%. The company’s business has been in decline for a long time, mainly, according to the company, due to the lower price of controlled bread. Angel’s losses in the past five years (2016-2020) amounted to nearly NIS 30 million, and its revenue during the period decreased by more than 15%, from about NIS 500 million in 2016 to NIS 415 million in 2020. Financial data released reported recently for the first half of 2021 indicate a continuing decline. While revenue was stable at NIS 205 million, the company’s loss increased nearly 50% to NIS 4.5 million. Before the rally caused by the current deal, Angel’s share price is down 33% since March 2020. Published by Globes, Israel business news – en.globes.co.il – August 26, 2021 © Copyright Globes Publisher Itonut (1983) Ltd 2021