Shikun u’Binui Holdings, controlled by Shari Arison, has sold 24.5 percent of Road 6 (the Trans-Israel Highway) franchisee Derech Eretz Highways to Israel Infrastructure Fund for NIS 773 million.Shikun u’Binui will report a capital gain of NIS 85 million on the sale.Shikun u’Binui and IIF currently own Derech Eretz in equal shares. The sale reduces Shikun u’Binui’s stake in the company to 25.5%. Shikun u’Binui did not sell its 24.5% stake in Derech Eretz Highways Management Ltd., which operates the Road 6 toll road, and is waiting for permission to increase its stake to 35%.The deal reflects a company value of NIS 3 billion for Derech Eretz. The sale is part of IIF’s effort to block rival Noy Infrastructures and Energy Fund's acquisition of 49% of the government’s rights in Derech Eretz for NIS 1.39 billion. Shikun u’Binui said that the price tag was based on Derech Eretz’s value in the Noy Fund deal.var ord = window.ord || Math.floor(Math.random() * 1e16);document.write('');Sources inform Globes that Noy Fund tried to buy Shikun u’Binui’s stake in the company, but failed to strike a deal. IIF promised that it would try to have Shikun u’Binui or its affiliates carry out future roadworks on Road 6 at market prices in accordance to an agreed-upon mechanism. Shikun u’Binui CEO Ofer Kotler said, “We successfully completed the planning, financing, and construction of Road 6 - giving substantial added value to Shikun u’Binui. Road 6 has become an income-producing property, and in line with the company’s strategy, we decided to sell our rights in it for NIS 773 million, reflecting a return of 8%.” Shikun u’Binui's share price rose 6.7% by mid-afternoon to NIS 6.42, giving a market cap of NIS 2.6 billion. Harel’s share price rose 2% to NIS 138.50, giving a market cap of NIS 2.9 billion.
