Gov't sells 11.7% stake in Discount Bank

Citi and IBI distributed the shares to foreign and local investors.

Sources inform "Globes" that investment firm Citi has won a government tender, and bought the government's entire remaining 11.7% stake in Israel Discount Bank (TASE: DSCT).

The shares were then sold to foreign and local institutional investors, with Citi distributing the shares to foreign investors, and investment house IBI distributing the shares to local investors.

Market sources estimate that Citi paid a very aggressive price of NIS 7.23 per share, similar to the market price. With the sale of 114.7 million shares, the government will receive about NIS 830 million from the sale.

A market source told "Globes", "The moment that Citi took all the government's 11.7%, the pressure on the share will lessen because there won't be any more expectations that the government will dump goods. The price that Citi paid for the shares is very, very aggressive."

The Ministry of Finance announced the beginning of bidding yesterday, with 9 institutions bidding on the bloc of shares.

The sale process was led by Accountant General Shuki Oren.

Published by Globes [online], Israel business news - - on October 26, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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