Bank Leumi (TASE: LUMI) is considering the sale of its American unit Bank Leumi USA for $1 billion, "Bloomberg" reports, according to people familiar with the matter.
"Bloomberg" says that Leumi is working with a financial adviser to find buyers for Bank Leumi USA. One of the sources said that Leumi may also consider an initial public offering for the unit. The plans are at an early stage and Bank Leumi may decide to keep the business, the sources told "Bloomberg."
Leumi regularly reviews options for Bank Leumi USA as part of an investment agreement with two minority shareholders in the unit, one of the people told "Bloomberg." Those shareholders are Endicott Management Co. and MSD Capital LP, which Bank Leumi USA’s holding company sold a 15% stake to in 2018. MSD Capital manages Michael Dell’s personal fortune.
A representative for Bank Leumi declined to comment to "Bloomberg."
Bank Leumi USA had five branches, $7.2 billion in assets and about $6 billion of deposits as of Dec. 31, according to the Federal Deposit Insurance Corp, "Bloomberg" reports.
Published by Globes, Israel business news - en.globes.co.il - on May 4, 2021
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