Bank Hapoalim has been permitted to increase its holdings in Bank Otzar Hahayal from 30% to 50%. The bank is negotiating for the purchase of shares belonging to the Defense Establishment provident fund.
Minister of Finance Yaakov Ne’eman recently concluded with Bank Hapoalim’s management that the bank is permitted to increase its holdings in Bank Otzar Hahayal from 30% to 50%, on condition that Bank Hapoalim undertakes, in writing, to sell its share in Bank Otzar Hahayal within three years from the date of the increase in holdings.
Ted Arison and the Dankner group, who control Bank Hapoalim, undertook, during the process of acquiring the bank, to sell its shares in Bank Otzar Hahayal within a number of years. The bank is currently negotiating with the Defense Establishment provident funds for the purchase of its shares in Bank Otzar Hahayal.
Ownership of Bank Otzar Hahayal is divided between Bank Hapoalim, which holds 50.06% of capital, and 30% of control; Defense Establishment provident funds, which hold 24% of capital and 30% of control; and Hever (commissioned officers and retirees organization) holds 24% of capital and 40% of control. The balance is held by private sources (brigade members). The bank’s equity is valued at NIS 340 million, and net profit for ’97 amounted to NIS 36 million.
Published by Israel's Business Arena July 16, 1998