Bank Leumi (TASE: LUMI) employees will receive the right to buy shares in the bank at a discount, as part of the privatization process and the sale of the government's shares in the bank.
In 2006, when Cerberus Capital Management won the Leumi privatization tender, bank employees received the right to acquire 4% of the bank shares held by the government. In a first phase, there was a right to acquire 2.87% (2.74% was actually bought), and it was agreed that workers would be able to buy another 1.13% when the privatization was complete.
Since the government sold part of its remaining shares in January, the employees now receive a proportionate part of the shares due to them - they have the option to buy 6.73 million shares, representing 0.46% of Leumi. The number of shares distributed to an employee will be relative to the employee's salary. Leumi chairman of the board David Brodet and CEO Galia Maor will also participate in the share distribution.
The average value of the benefit per employee will be NIS 3,000.
Employees will be granted the option to buy shares at NIS 13.21 each (NIS 13.27 after adding linkage to the CPI), which represents a discount of 25% to the price per share at which the government sold in January. With the current share price around NIS 17, the price represents a total theoretical benefit of NIS 26 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 21, 2011
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