The Bank of Israel has postponed the deadline for the splitting of Ofer Investments Ltd. until after the week-long mourning period for Yuli Ofer, who died on Sunday. The Banking Supervision Department still expects Ofer Investments, now owned by Yuli's children Doron and Liora and his nephew Eyal Ofer, to comply with its demand to separate the company's holding in Mizrahi Tefahot Bank (TASE:MZTF) from its real estate business, held through Melisron Ltd. (TASE: MLSR).
Sources believe that Doron and Liora Ofer will not be able to strike a deal, due to the family squabble, and that Supervisor of Banks David Zaken will have to force the Bank of Israel's solution on Ofer Investments.
The Ofer family owns 25.44 % of Mizrahi Tefahot Bank, 19.72% through Ofer Investments, in which Yuli Ofer owned 36.7%, Eyal Ofer owns 33.3%, and Liora and Doron Ofer own 15% each. Eyal Ofer also directly owns 5.72% of the bank. Since Yuli Ofer's will has not yet been released, the division of his holding in Ofer Investments and the bank or the new balance of power between Liora and Doron are not yet known.
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2011
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