Israeli businessman Aaron Frenkel sold about 31 million shares in the company Bank Leumi (level: room) (about 2% of the bank’s shares) in a distribution on the market with an estimated value of 1.4 billion shekels. The deal was executed through JP Morgan Bank in Israel.
The deal comes about 30 months after a massive stock offering by the bank, in which key figures in the Israeli economy such as Frankel participated. He is believed to be the largest buyer in the bid, while other participants included Alfred Akirov, through Alrov Properties and Lodgings (TASE: ALRP).
As far as is known, Frenkel has now sold Leumi shares at a 3% discount to the share price through JP Morgan. Leumi’s share price began the trading day on the Tel Aviv Stock Exchange (TASE) on Tuesday at NIS 46.2. Trading closed with a slight decline, with an extraordinary trading value of 139 million shekels. The reduction means that the share price in the deal amounted to about 44.8 shekels, and thus the value of the share amounted to about 1.39 billion shekels. After the deal, Frenkel will still retain a smaller stake in the bank.
Bank Leumi, run by CEO Hanan Friedman, is the largest bank in Israel by market capitalization, at NIS 69 billion, ahead of Bank Leumi. Bank Hapoalim (level: Polly), which has a market value of 63 billion shekels.
In June 2022, Leumi issued shares worth NIS 2.75 billion, selling 91 million shares at a share price of NIS 30.25. Frenkel bought nearly NIS 1 billion worth of shares and came up with a holding of several percent — less than the minimum that would make him a party in interest in the bank, which would have required him to report current stock transactions.
Those who bought Leumi shares in the offering at the time, when global interest rates were just beginning to rise from zero, correctly called the increase in bank profits following subsequent interest rate hikes. Bank Leumi shares have since risen 52% from that offering price, while the banks have also paid dividends that have led to stock buyers recording healthy gains.
In recent years, Frenkel has proven to be one of the smartest investors on the Tokyo Stock Exchange. At the end of September 2024, he bought 3.5% of the Tamar reservoir from Harel and the Israeli Infrastructure Fund for one billion shekels. Following this deal, it acquired a stake of approximately 20% in the Tamar gas field directly and 14.5% indirectly through Tamar Petroleum (TSX: TMRP). In the past, he has completed successful trades in BaySide Land Corp. stock. (Gav-Yam) (TASE: BYSD) and drone manufacturer Aeronautics.
Published by Globes, Israel Business News – en.globes.co.il – on January 22, 2025.
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