After 35 years as the controlling shareholder in income producing real estate company G City (TASE: GCT) (formerly Gazit Globe), the company reports that Israel businessman Chaim Katzman is looking to relinquish his control in the company, which operates mainly overseas. He wants to sell at least half of his 54.3% stake in parent company Norstar Holdings (TASE: NSTR) and has hired underwriters Discount Capital for the purpose.
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To relinquish control, Norstar will have to reduce its holdings to less than 25% of G City’s shares, meaning it will have to sell at least 30% of the shares. The question will be whether the shares will be sold to one person, who could become the new controlling shareholder, or to several people, so that G City becomes a company without a controlling core. G City is currently traded at a market cap of NIS 1.9 billion.
Norstar’s board of directors has decided to invite and examine offers to sell some of G City’s shares to a «strategic investor.» However, Norstar clarified that they will not sell shares on the market. Norstar itself is traded at a market cap of only NIS 490 million. The company stresses, «As part of the process under consideration, the company is not seeking to exit its entire investment in G City, but rather to examine the sale of some of its holdings in a way that will allow it to benefit from significant consideration for the shares that will be sold, alongside retaining a substantial holding in G City.»
Katzman currently owns approximately 30% of Norstar’s shares and is its controlling shareholder. In early 2022, Israel Canada, owned by Barak Rosen and Asaf Touchmayer, also made a significant investment in the company. Israel Canada currently owns 14.5% of the shares (initially it held 22.6% of shares but this was later diluted in an offering made by Norstar in early 2023, when it raised NIS 300 million). In fact, Katzman owns more of these shares, as investor Yitzhak Sela gave Katzman the option to vote on his behalf at company meetings. Sela currently owns 6.25% of Norstar’s shares, after recently purchasing shares.
Published by Globes, Israel business news — en.globes.co.il — on June 11, 2026.
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