The government has begun the process of the sale of its remaining 25% stake in Israel Discount Bank (TASE: DSCT) Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism) today convened an urgent meeting of the committee at 4:30 pm to discuss the sale.
After the Tel Aviv Stock Exchange (TASE) closed today, Accountant General Shuki Oren opened an auction for a 5% bloc of Discount Bank shares. He approached 10 foreign investment houses. The winner will be announced tomorrow, and the winner will also have an option to buy an additional 3.33% of the bank.
The Ministry of Finance wants to sell its stake in Discount Bank this year.
In a notice to the TASE this afternoon, Discount Bank said that State of Israel Properties (MI Holdings) had transferred its 245 million shares in the bank to a nominee company as the first step in the sale of the shares.
Gafni told the Finance Committee, "We must show more responsibility than the government. This isn't something dramatic, but we bear a heavy responsibility. Don’t say anything to journalists until the TASE closes." He explained the reason for secrecy, "If the committee met while the market was open, Discount Bank's share would have collapsed."
Discount Bank's share fell 2.2% today, as part of the general market drop.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010