Update on $TASE (Tel Aviv Stock Exchange)
On December 12th, $TASE came out with a press release that represents some incrementally good news for the company:
Plan for the Sale of the Arrangement Shares and the Distribution of a Special Dividend
Basically what happened is after a long stand off, TASE and Pre-IPO owners reached an agreement to sell the shares and distribute a special dividend (for shareholders as of the record date of 12/24/2023). Here’s the main points of the agreement:
Special dividend of NIS 2.5 per share to be paid to all shareholders on January 2, 2024.
The five TASE members holding Arrangement Shares will grant an irrevocable power of attorney to Leader & Co. Investment House Ltd. for the sale of the shares for 12 months commencing on the payment date of the special dividend.
Any sale proceeds exceeding NIS 5.08 per share will be transferred to TASE.
The proceeds from the sale of the Arrangement Shares will be used for investment in TASE's technological infrastructure.
TASE, despite the existence of sufficient liquid funds, is going to borrow NIS 150 million.
This reasons why this is significant news is at the current trading price of of NIS 22 (pre the dividend) the “excess consideration” that flows back to $TASE is 16% of the EV:
The dividend and incremental cash that will flow to their balance sheet are just a cherry on top of an already great business with substantial barriers to entry and an opportunity to raise prices on their offerings which are very cheap compared to other exchanges globally.
Please please please reply back with comments, critiques, suggestions for further research….