Azrieli Group reports a sale of Compass server company to the Brookfield Fund for $5.7 billion

The Azrieli Group reports today on a huge deal for the sale of the Compass server company to the Brookfield Fund for $5.7 billion. Azrieli owns 33% of Compass shares and is expected to receive an income of NIS 3.2 billion following the sale, record an estimated cash flow profit of NIS 2 billion, and a capital gain of NIS 1.3 billion.
In July 2019, Azrieli purchased a 20% stake in the server company for $135 million and later increased the holding to 33% - in total it invested NIS 912 million in the purchase of the holding in the server company.
The company's announcement to the stock exchange came out following reports about the deal in the international media that led to a sharp jump of more than 10% in the Tel Aviv stock, and at a certain point trading in the stock was stopped. Later, after trading resumed, Azrieli closed with a 4% increase in a huge turnover of NIS 114.6.8 billion - against a daily average of NIS 28.5 million in the last month.
Dana Azrieli, the controlling owner and chairman of the company, said following the transaction: "I am proud to announce a significant transaction in the field of data centers for the realization of the group's minority holdings in the Compass company. The investment in Compass was a stepping stone for the group to enter the field, and in the opportunity that arose, and after the company examined various alternatives in connection with this minority holding, we chose to realize our holdings with an excellent return.
Eyal Hankin, CEO of the Azrieli Group, stated that "the realization of the group's minority holdings in Compass reflects a return of 2.5 times on the investment in the 2.3-year MHA and at a price that was an excellent opportunity for the company. This is an annual shekel return on the investment of approximately 40.4%, which is expected to yield the group a profit of hundreds of millions of dollars."