The ultra-Orthodox billionaire, Yitzhak Mirilashvili, known as the 'Russian Mark Zuckerberg,' has completed the acquisition of control of the real estate company Rothstein, from a group of controlling shareholders that includes Shmuel Leviev, brother of businessman Levi Leviev, Maurice Malka, Emily Amakya Haber, Danny Lipshitz, Moshe Dahan and Benjamin Pitousi, who hold a total of approximately 78% of the company's shares. This was reported by the Globes website.
Following the purchase transaction estimated at 67 million shekels, Mirilashvili, son of oligarch Mikhail Mirilashvili, will receive 55% from the real estate group. Isaac, only 28 years old, who donates hundreds of millions of his fortune to charity, is considered one of the richest young people in Israel and Russia.
Together with Mirilashvili, Avishai Ben Haim, CEO of Rothstein, purchased the company. The deal was signed at a share price of 10.1 shekels - similar to the market price, which reflects Rothstein's value of about 122 million shekels, after a jump of 851% in the past year.
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As part of the deal, Mirishvili and Ben-Haim were given an option to purchase the remaining holdings of the sellers (approximately 23%) within two years of the deal's completion, at a price of NIS 12.5 per share. If this is not exercised, the sellers will be able to sell their holdings to the purchasing duo at a price of NIS 11.2 per share.
About a year ago, Mirilashvili sold his share (40%) in the largest social network in Russia, VKontakte, for about $1.12 billion, a move that made him one of the richest people in Russia at such a young age. In Israel, Mirilashvili manages the family venture capital fund "Katayim".
He is also the owner of the new Channel 20, which will begin operating in the coming months.
It was recently revealed in Globes that Mirilashvili purchased a penthouse in the Ritz-Carlton project in Herzliya for NIS 13 million. Sources close to Mirilashvili told Globes that he intends to deepen his investments in real estate in Israel.
Mirilashvili's partner in the deal, Avishai Ben-Haim, announced at the beginning of the year that he was leaving Rothstein, and was supposed to end his position in two weeks. His being one of the buyers caused astonishment in the real estate market, since until recently he served as the company's active manager. In addition, Ben-Haim holds close to 5% of Rothstein's capital.
Rothstein Company is engaged in initiating and constructing mainly residential projects throughout the country. In 2013, the company reported a 241% jump in profits, reaching NIS 10.5 million. Last year, it tripled its revenue to NIS 227 million, after recognizing the sale of apartments in several projects, including in Netanya, Kadima-Tzoran, Ramla and Tel Aviv. The company's equity stands at NIS 58 million.
