Shikun & Binui Announces the Company's Board of Directors Decision to Update the Group's Business Strategy

AIRPORT CITY, Israel, Nov. 28, 2019 /PRNewswire/ --

General

Shikun & Binui Ltd. (TASE: SKBN.TA) ("the Company") will focus on improving business performance while accelerating operations and increasing the potential transactions backlog in most activities, as well as changing organizational culture, inter alia, to strengthen synergies between all segments of the Group's operations.

The Group will strive for operational efficiency in all its operations, and will reduce its financing expenses (including by way of marketable debt turnover, bond raising in subsidiaries and using assets as collateral for credit in the subsidiaries) in order to achieve significant savings in its long-term expenses.

In general, the Group's strategy will be based on a strategy of raising value, while strengthening the rental base and changing the realization policy. In addition, the Group will work to maintain and even improve the level of compliance in the Group.

In the real estate sector

The Group will prioritize the development of most of its real estate over their sale and the continued acquisition of land for residential development. In the rental sector, the Group intends to develop the rental real estate in both the existing activity areas and other cities in the world (by development and acquisition of properties), while focusing on office space. In addition, the Group plans to establish a rental housing division and student dormitories and to act in the field of assisted living. In the area of residential development, the Group intends to examine the growth in urban renewal in Israel, activity vis-a-vis acquisition groups as well as to examine activity in the luxury sector and activity in the subsidized housing projects. The Group will also work to accelerate the volume of development in the traditional path.

In the energy sector

The Group will utilize its international activities to expand renewable energy activities to Europe, the US and Africa, including through mergers and acquisitions. In addition, the Group will continue to expand its energy operations in Israel.

In the infrastructure and construction contracting sector

The Group intends to take an active part in the national infrastructure market in the Company's areas of activity, which are in an upward trend, as well as expanding its activity in the field of construction to the private market - residential, office space and commercial. The Group will work to improve the local contracting company in the US (i + icon) and to deepen the penetration into the US contracting market on projects of substantial scope, in cooperation with the S&B's concessionaire company in the US concession projects. In the field of contracting in Africa, the Group will focus on geographic targeting by reducing the number of active countries and focusing on strong economies.

The concessions sector  

The Group will work to expand its infrastructure portfolio and take an active role in the development and construction of national infrastructure projects (PPP) in Israel, the US and other markets. The Company will also work to develop and improve the existing portfolio of assets and to create stable and growing cash flows in the long run from operating national infrastructure projects.

The aforesaid in this report in connection with the Company's updated strategy, including the manner in which the strategy is implemented, includes forward-looking information as defined in the Securities Law, 5748-1968, which is based on the Company's intentions, estimates and plans as of the date of this report only. In practice, the above may not materialize, in whole or in part, or materialize in a different manner or in a different format, including the fact that the Group is not sure that the realization of the strategy will succeed. This depends, among other things, on the state of the economy, the state of real estate and infrastructure in Israel and in the world, the state of capital markets in Israel and in the world, geopolitical changes, changes in economic viability, changes in market conditions and changes in the markets themselves, regulatory changes, as well as a result of the influence of other risk factors that apply to the Group's activities.

IR Contacts:
Company
Leon Vasilnitzky
+972(3)6305894
[email protected]  

External IR
Ehud Helft, GK Investor Relations
+1-646-201-9246
[email protected]

SOURCE Shikun & Binui Ltd.