Golan stock leaps as owners mull $100m land transfer

Shares in Golan Fine Crafts, a publicly traded shell corporation, surged 67% during trade on Monday. Why? Because the company made an announcement that, at first, took the market animals by complete shock: that it may take over $100 million worth of real estate assets owned by its controlling shareholders, Mor Dan and Eilon Baruch (who together own 73% of Golan).

Golan had begun trading Monday at a market cap of NIS 36 million. It then gained 67%, and after losing 7.5% yesterday, ended the Tuesday session at a market cap of NIS 57 million.

Until this week, at least, Golan was entirely deviod of business activity.

The astonishing value of the land (in dollar terms) stems not from, say, a promising casino compound in Las Vegas, or some newly discovered diamond mine. It stems from a 120-dunam lien-free beachfront tract between Givat Olga and Netanya, near the coast.

Golan chairman Zvi Yemini says the land was appraised by a land assessor based on future use for a residential neighborhood of homes with gardens.

Construction will be partly financed from money raised from the public via securities issues.

Yemini stressed that since the land is lien-free, it could be used to secure a mortgage.

"This company is going to grow over the next few years," says Golan CEO Kfir Silberman. "The owners are bringing the land into the company in order to start developing it, and the company has plans to build about 1,000 homes. Our goal is to create real value for the investors, and bring institutional investors into the company."

Mor and Baruch, both of whom reside abroad, acquired the remains of Golan in December 2009 from businessman Oded Dessau for NIS 9 million, less the company's debts. Last week Golan's owners decided to change its name to Asia Investments and Development.

Yemini, formerly chairman of ZAG Industries, headed the Plastics and Rubber division at the Israel Manufacturers Association.

He currently sits on the boards of no less than ten privately owned companies.