Most of the consideration will be paid through the transfer of 5.5% of Hapoalim Investments’ shares in Bezeq to Bank Hapoalim.
Poalim Investments announced the conclusion of a deal today, in which it will acquire from Bank Hapoalim 16.1% of its own shares (through a subsidiary) for NIS 167 per share, 20% higher than the stock exchange price. The deal amounts to NIS 159.5 million, following which Poalim Investments’ subsidiary will hold 23% of shares in the parent company (controlled by Urdan of the Shrem-Pudim-Kelner group).
Poalim Investments will finance most of the consideration for the acquisition, NIS 119.4 million, through the transfer of Bezeq shares it owns to Bank Hapoalim. Poalim Investments currently holds 5.5% of Bezeq shares, fully diluted, mainly through convertible bonds it purchased last year. It will pay the balance, NIS 40 million, in cash to Bank Hapoalim.
The price determined for the Bezeq share in the deal is NIS 15 per share - similar to the price of Bezeq shares on the stock exchange, following a 20% rise since the beginning of the year. The sale of the shares will yield Hapoalim Investments a rapid capital gain of NIS 17 million.
Published by Israel's Business Arena March 15, 1999