Norges Bank halves Mobileye stake

Norway’s central bank Norges Bank has sold more than half of its 10.7% stake in Israeli Advanced Driving Assistance Systems (ADAS) company Mobily International Company (NASDAQ: MBLY), according to the company’s latest holdings report filed with the U.S. Securities and Exchange Commission (SEC).

At the end of July, Norges Bank owned a 5.2% stake in Mobily, which is currently worth $78.8 million, compared with a 10.7% stake in mid-April. Taking the average share price over that period, Norges Bank would have received $142 million for the shares it sold.

Through its investment division, Norges Bank manages Norway’s wealth fund, which generates revenue from the country’s oil revenues. According to the bank’s latest figures, it has $1.59 trillion in assets under management and is known for emphasizing investments based on environmental, social and governance (ESG) principles.

In the past, Norges Bank has divested from Israeli companies operating along the “Green Line,” as well as a defense technology company. Elbit Systems Ltd. (NASDAQ: ESLT; level:ESLT), and recently announced a review of its holdings in Israeli companies due to the war in Gaza. However, the fund does not categorically rule out investments in companies linked to Israel, and the list of companies in which it acquired a stake at the end of 2023 included several Israeli companies besides Mobileye, including Bezeq, Bank Hapoalim, Bank Leumi, the major shopping centers, Kool Insurance, Kamtech, Delek Motors, Nice Systems, Nova, Phoenix, Tower Semiconductor, and the Tel Aviv Stock Exchange (TASE).

Norges Bank was a major investor in Mobileye’s IPO in December 2022, committing to invest $330 million with Baillie Gifford.

Norges Bank’s sale of Mobily shares would have further depressed the company’s share price in a difficult year for the stock. After losing 51.5% of its value since the start of 2024 and returning to its IPO value in 2022, the stock fell another 24% on Thursday and Friday after posting disappointing financial results and cutting its outlook. Mobily’s market value now stands at $12.87 billion.