Investment fund York Capital Management pulled a surprise on the Israeli capital market by winning the tender for Psagot Ofek Investment House with a NIS 1.35 billion bid.
Migdal Insurance (TASE: MGDL), which bid NIS 1.25 billion, withdrew from the tender. “We won’t buy assets at a higher price than what we regard as economically worthwhile,” Migdal said. “If someone wants to pay more, we wish them well.” Other bidders in the week-long tender included Apax Partners and Africa-Israel Investments (TASE: AFIL).
York Capital is a New York-based international investment fund with offices in London. Senior managing director James Dinan and chief investment manager Daniel A. Schwartz founded the fund in 1991. York Capital’s leading investment fund yielded an average return of 17%, and its other funds yielded an average annual return of 21%.
York Capital’s investors include university pension and investment funds. Schwartz, who is currently visiting Israel, said that the investment in Psagot Ofek reflected York Capital’s confidence in the Israeli economy.
York Capital’s previous investment in Israel was in June 2005, which it acquired control of Gilat Satellite Networks (Nasdaq: GILTF; TASE: GILTF), together with Meir Shamir. The fund invested an estimated NIS 350 million in Gilat.
Managed by general manager Gabriella Ravid, Psagot Ofek is considered Israel’s best mutual fund management company, managing NIS 20 billion in six mutual funds, and NIS 6 billion in clients’ portfolios. Managed by Roy Warmus, Psagot Ofek’s mutual funds have led the ratings for a long time. Psagot Ofek manages a total of NIS 28 billion, including the Tali exchange trading funds (ETF).
Published by Globes [online] - www.globes.co.il - on November 28, 2005