Leumi's refusal is due to the market situation. MI Properties speeds up Eliyahu group share sale process and are controlling shareholders in Union Bank.
Bank Leumi has refused to participate in the planned sale of shares in Union Bank, as planned by the government. According to plan, MI Properties were to issue its holdings in Union Bank, some 24% of shares, together with Bank Leumi’s 16% share of Union Bank. Bank Leumi's senior management recently notified MI Properties that, due to the current capital market situation, it had no intention of participating in the sale offer, planned for August.
At the same time, negotiations are underway concerning the sale of shares in the Eilyahu group, which owns a 60% share of Union Bank. Due to the situation on the TASE, contacts have been accelerated and are apparently reaching conclusion. It is thought that a planned share issue on the TASE has been shelved at this stage, despite the fact that MI Properties did not make an official announcement to Union Bank.
It has been speculated that during negotiations with the Eliyahu group, the selling value discussed
did not exceed the bank's shareholder equity of some NIS 570 million.