The Eliahu group paid NIS 153 million for 19.5% of Union Bank’s shares.
The State completed the sale of its remaining stake in Union Bank yesterday evening, after the Bank’s controlling shareholder, the Eliahu group, transferred NIS 153 million to State of Israel Properties for 19.5% of the Bank’s shares. Now that the deal has been completed, the Eliahu group has an 86% stake in Union Bank.
The deal was transacted after having received the approval of the Knesset Finance Committee and Supervisor of Banks Yitzhak Tal.
The Eliahu group, made up of Shlomo Eliahu, Yeshayahu Landau and David Lubinsky’s heirs, has an option, exercisable in two years, to buy another 14% of the remaining Union Banks shares held by Bank Leumi.
It is estimated that the Eliahu group plans to merge with Discount Bank if it wins the tender for buying the bank’s controlling interest. The Eliahu group is bidding against a group led by businessman Jeff Keil. Alternatively, if the Eliahu group wins the Discount Bank tender, it may decide to sell off Union Bank. Mizrahi Bank recently expressed an interest in acquiring Union Bank, should it be put up for sale.
Published by Israel's Business Arena December 28, 1999