SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of June 1998
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GENESIS DEVELOPMENT AND CONSTRUCTION LTD.
(Name of registrant)
1O Hasikma Street
Haifa 31700, Israel
(Address of principal executive offices)
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Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.
Yes No X
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RUBENSTEIN INVESTOR RELATIONS
FROM: GENESIS DEVELOPMENT AND CONSTRUCTION LTD.
10 Hasikma Street
Haifa 31700, Israel
Contact: Eli Aran
Telephone: (914) 634-0300
Fax: (914) 634-8077
Rubenstein Investor Relations
Contact: Jeffrey Volk
Telephone: (212) 843-8086
Fax: (212) 843-9200
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FOR IMMEDIATE RELEASE
PRINCIPALS OF GENESIS DEVELOPMENT AND CONSTRUCTION LTD.
WIN BID TO ACQUIRE CONTROLLING INTEREST IN ISRAEL'S
SECOND LARGEST OIL, ENERGY AND REAL ESTATE COMPANY
NEW YORK, NY, JUNE 17, 1998 GENESIS DEVELOPMENT AND CONSTRUCTION LTD.
(Nasdaq: GDCUF, GDCOF, GDCWF and GDCZF) announced today that Eli Aran and
Moshe Schnapp, its principal shareholders and its Chairman and President,
respectively, are the successful bidders in acquiring a controlling interest
in Granit Hacarmel Investments Ltd., the second largest oil, energy and real
estate company in Israel, from Mashab Enterprise and Development Ltd. for
approximately $211 million. Granit Hacarmel, a public company listed on the
Tel-Aviv stock exchange, had approximately $873 million of sales in 1997 and
reported approximately $202 million of sales for the first quarter of 1998.
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GENESIS DEVELOPMENT AND CONSTRUCTION LTD.
PAGE 2
Granit Hacarmel has significant real estate holdings, both directly and
through the gas stations it controls. The terms of the agreement provide an
option for Genesis to purchase the equity interests to be acquired by Messrs.
Aran and Schnapp at a price equal to their winning bid.
Commenting on the agreement, Eli Aran, Chairman of Genesis, stated "This
agreement marks the beginning of a long term opportunity for Genesis. We
believe that if Genesis exercises its option it would become the second-
largest oil, energy and real estate company in Israel. Mashab Enterprise and
Development was required to divest itself of certain assets by the Israeli
government due to anti-competitive concerns. The Genesis principals were one
of among over 30 qualified bidders for the assets, including Bank Leumi Le-
Israel Ltd., Israel's second largest bank."
Headquartered in Haifa, Israel, Genesis Development and Construction Ltd. is
an Israeli company principally engaged in real estate development and
construction management with a primary focus on residential and public
properties in Israel. The Company acts as a general contractor,
subcontracting all of its construction activities. In addition to managing
all of its own projects, Genesis also provides consulting, management and
financial management services to other real estate developers and contractors.
THIS REPORT MAY CONTAIN FORWARD-LOOKING STATEMENTS WHICH ARE MADE PURSUANT TO
THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, AND
CONCERN, AMONG OTHER THINGS, THE ABILITY OF THE COMPANY TO COMPETE IN THE
ISRAELI REAL ESTATE INDUSTRY AND THE STRENGTH OF SUCH INDUSTRY, AND ARE
SUBJECT TO CHANGES IN THE ISRAELI ECONOMY, CONTINUING IMMIGRATION, THE
AVAILABILITY OF LAND, AND THE CONTINUED AVAILABILITY OF RAW MATERIALS AND
LABOR. FURTHER INFORMATION REGARDING THESE RISKS IS DESCRIBED FROM TIME TO
TIME IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GENESIS DEVELOPMENT AND CONSTRUCTION LTD.
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By: Eli Aran
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Name: Eli Aran
Title: Chairman
By: Moshe Schnapp
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Name: Moshe Schnapp
Title: President
Date: June 18, 1998
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