Ruth Ofer, Yuli Ofer's widow, will not be able to receive Ofer Holdings Group shares even if she prevails in the legal suit she intends to pursue against her late husband's will, unless she first receives approval from the Bank of Israel, which could take months.
Since Ofer Holdings owns Mizrahi Tefahot Bank (TASE:MZTF) and it is impossible to attain control over the bank without Bank of Israel approval, Ruth Ofer will need to go through due diligence, which will be conducted by the Supervisor of Banks. This fit & proper persons procedure assesses the competence of the person requesting to become a controlling partner in the bank. This examination generally takes many months, and sometimes even more than a year.
The late Yuli Ofer left all Ofer Holdings shares, which are worth NIS 1.2 billion, to his daughter, Leora Ofer. His son, Doron Ofer, did not receive anything and was furious. Last week it became clear that in addition to Doron Ofer, who is contesting the will and claiming its invalidity, Yuli Ofer's widow, Ruth Ofer, is considering her options and might turn to the courts to demand a portion of her late husband's estate. Ruth Ofer is Yuli Ofer's third wife.
Leora Ofer will receive 36.7% of Ofer Holdings shares, which controls Melisron Ltd. (TASE: MLSR) and Mizrahi Tefahot Bank. Since Leora Ofer already owns 15% of Ofer Holdings shares, as does her brother, Doron, her share of ownership will rise to 51.7% of the company, whereas Doron will own only 15%.
The Ofer family owns 25.44% of Mizrahi Tefahot Bank, 19.72% through Ofer Investments, in which Yuli Ofer owned 36.7% (until the will was read), Eyal Ofer owns 33.3%, and Liora and Doron Ofer own 15% each. These shares are worth NIS 1.5 billion. Eyal Ofer (לין אחזקות) also directly owns 5.72% of the bank.
The Ofer family owns 71.5% of Melisron, the leader in mall ownership in Israel, which owns the Ramat Aviv Mall, among others. Melisron was the number two player in the mall ownership sector until a year ago when it acquired British-Israel Investments Ltd. (TASE: BRTS) and bypassed the Azrieli Group Ltd. (TASE: AZRG). Ofer Holdings owns NIS 1.7 billion worth of Melisron shares.
Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2011
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