Bank Leumi (TASE: LUMI) today notified the TASE that last week it exercised its put option for the sale of its stake in Union Bank of Israel (TASE: UNON) to Sherodar Assets Ltd. and Yeshayahu Landau Holdings (1993) Ltd., both parties at interest in the bank, in equal shares.
Bank Leumi sold 3.8 million shares in Union Bank, 6.46% of Union Bank's share capital. The sale was made on the basis of Union Bank's equity at the end of 2008, which was NIS 1.57 billion. Bank Leumi sold the shares for NIS 101 million and will report a NIS 12 million capital gain on the sale in its financial report for the second quarter. Bank Leumi will publish its financial report for the first quarter on May 31.
Following the sale, Bank Leumi owns 200 shares in Union Bank, held through two subsidiaries.
Before Bank Leumi's sale, Shlomo Eliahu was Union Bank's largest shareholder, with a 22.92% stake held through Shlomo Eliahu Holdings Ltd. and an additional 4.2% stake held through Eliahu Insurance Co Ltd. Yeshayahu Landau Holdings owned 21.55%, David Lubinski Asets (Holdings) 1993 Ltd. owned 15.16%, and Sherodar Assets owned 4.47%.
Union Bank's share rose 6.3% in morning trading today to NIS 11.45. Bank Leumi's share rose 3.5% to NIS 10.73.
Published by Globes [online], Israel business news - www.globes-online.com - on May 19, 2009
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