The Tel Aviv Stock Exchange (TASE: TASE) reported this morning that hedge fund billionaire Bill Ackman and his wife Neri Oxman have made their first investment in Israel, buying a 4.9% equity stake in the stock exchange for $25 million. The couple are among the prominent investors from Israel, the US, Europe and Australia who participated in a secondary offering of shares in the TASE by Israeli institutions and the TASE itself.
Of the net proceeds of the offering, NIS 87 million will go to the selling institutions and NIS 242 million to the TASE. The offering amounts to 18.5% of the shares in the TASE. It was made at a price of NIS 20.6 per share. TASE shares are currently up 8.48%, at NIS 22.48.
The TASE said in its announcement that the strong interest from international investors reflected “a strong vote of confidence in both the Tel Aviv Stock Exchange and the Israeli economy at large,” and added, “TASE intends to use the net proceeds from this offering for investment in its technology infrastructure.”
Jefferies served as sole global placement coordinator, with Leader Capital Markets acting as local placement coordinator for Israel.
Bill Ackman, whose wealth is estimated by Forbes at $4.1 billion, is a hedge fund manager and activist investor, the founder of New York-based Pershing Square Capital Management. He made headlines recently with his vocal criticism of US universities, particularly his alma mater Harvard, for their failure to combat anti-Semitism on campus. Since October 7, he has also become a leading advocate for Israel. Neri Oxman, who was born in Haifa and trained as an architect at the Technion and the Architectural Association School of Architecture in London before earning a doctorate from MIT, where she also taught, is known as the founder of the field of materials ecology.
The TASE was represented in the deal by Advs. Ofer Yankovich and Gil Cherchi of Weksler, Bregman & Co. Jefferies was represented by Advs. Nir Dash and Ron Ben-Menachem of Herzog .
Other investors in the TASE’s NIS 350 million secondary offering, sources close to the matter have told “Globes,” included Roy Vermus and Shlomi Bracha’s Noked Capital Management hedge fund, and Migdal Insurance and Finance (TASE: MGDL). Market sources believe Migdal bought a 2% stake for NIS 40 million.
Sources tell “Globes” that at least 10 foreign investment bodies from the US, Europe, Australia and Asia bought 70% of the shares on offer (a 13% stake), while the remaining shares were bought by large institutional investors in Israel.
Following the secondary offering, foreign investors now own more than 50% of the TASE led by Australian-US fund Manikay Partners (20%), Danish pharmaceutical company Novo Nordisk (8.5%), and Artisan Partners (5.65%).
Published by Globes, Israel business news – en.globes.co.il – on January 24, 2024.
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