FIMI sells TAT Technologies stake for NIS 129m

Israeli private investment company FIMI Investment Opportunities FundsApple, led by founder and CEO Ishai Davidi, has benefited from the upward momentum in the company’s stock price. Tat Technologies (TASE: TATT; Nasdaq: TATT) to sell a 25% stake for NIS 129 million. TAT shares have doubled in value over the past year. With the sale, FIMI will reduce its stake in TAT from 51.8% to 26.8%. Sources told Globes that the shares were purchased by Israeli institutional investors Mor and Meitab and Yelin Lapidot, who already had a 5.6% stake in TAT.

TAT Technologies provides environmental control products and services to the commercial and military aviation industries. FIMI first invested in TAT in 2004, purchasing shares for $8 million and selling them to KMN Holdings for $40 million in 2007.

Following the collapse of KMN in 2013, the receiver held an auction for a controlling 53.7% stake in TAT, which FIMI won for NIS 125 million — a third of the price at which it sold its shares to KMN in 2007. In 2016, FIMI invested an additional $39 million (NIS 140 million) to increase its stake in TAT. With the shares now sold, FIMI will still own NIS 170 million worth of TAT shares, which together with the dividends means it has seen a 120% return on its investment, some of which has yet to materialize.

A few weeks ago, FIMI sold shares in Beit Shemesh Engines (TASE: BSEN) for a huge profit. FIMI sold 10% of Bet Shemesh Engines, which manufactures and refurbishes aircraft engine parts, to Clal Insurance, Meitav, Yelin Lapidot and More, for NIS 178 million, an 11% discount to the market price. The sale represents more than a quarter of FIMI’s stake in Bet Shemesh Engines, leaving it with a 25% stake, meaning it retains control. FIMI previously sold part of its stake in the company in 2019 for NIS 100 million.

TAT is also holding a private placement for institutional investors at a similar price of NIS 54.95 per share to what FIMI sold its shares for, reflecting an 11% discount to the market price. TAT will raise NIS 37 million ($10.1 million) in the private placement. Several months ago, TAT raised a similar amount in a private placement, when the share price was much lower at NIS 31.7 million.

In the first half of 2024, TAT revenue was $70.6 million, up 36% from the first half of 2024. GAAP net income more than doubled to $4.7 million, exceeding GAAP net income for the full year of 2023.

This article was published in Globes, Israeli Business News – en.globes.co.il – on September 2, 2024.

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