Yesterday, Rani Zim sold his entire 65.7% stake in Psagot, plus tradable options, to the company’s former CEO Yaniv Bender. Bandar will pay NIS 40 million in cash upon completion of the deal, and will then own 73% of Psagot, which became a shell company after selling its business.
Bender served as CEO of Psagot for eighteen months under Zim as controlling shareholder, until the end of 2023.
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Psagot’s value has dropped by 80% since Rani Zim bought it
Zim bought Psagot’s mutual funds and portfolio management company three years ago, but the move did not go well. The company’s stock price has fallen, and most of its business has recently been sold to competitors The Phoenix Holdings and IBI Investment House. During this period, Psagot lost more than 80% of its value, and its market value before the current deal was less than 60 million shekels.
The deal is subject to prior conditions, including the completion of the sale of its subsidiary Psagot Securities, the payment of the company’s Class C bonds, and the cancellation of all licenses to provide credit services and financial assets in the company and its subsidiaries.
Psagot recently announced the signing of a binding memorandum of understanding to sell its holdings in Psagot Securities and the Psagot brand to Carmel Credit for NIS 73.5 million, subject to approval by the Tel Aviv Stock Exchange.
After the completion of the sale of Psagot Securities, Psagot Group will change its name and will be a company with a significant cash balance owed to third parties and no debts of its own.
Zim himself faces personal debts amounting to hundreds of millions of shekels, due to, among other things, the acquisition of Psagot in 2021 for NIS 405 million. To cover his debts, he sold several assets in the past few months, including 9% of the shares of Rani Zim Real Estate Shopping Company.