Bank Leumi (TASE:LUMI) today notified the Tel Aviv Stock Exchange that it had acquired 20% of Leumi UK from CP Holdings for ₤20.2 million (NIS 160 million). Following the acquisition, Bank Leumi owns 99% of Leumi UK.
The acquisition took place according to an agreement previously signed between Bank Leumi and CP Holdings, wholly owned by businessman Bernard Schreier. Under the agreement, Bank Leumi committed itself to buying CP Holdings’ stake in Leumi UK, in the event of a request from CP Holdings.
Bank Leumi said the acquisition, which had taken place at CP Holdings’ request, was consistent with Bank Leumi’s global strategy.
Bank Leumi’s commitment to its British partner included an obligation to buy the Leumi UK shares at their balance sheet value, as of the date of the exercise of CP Holdings’s option. The price of the deal may therefore be adjusted slightly with the publication of Leumi UK’s financial statements, which is expected shortly.
Leumi UK had a net profit of NIS 32 million in the first half of 2002, compared with NIS 60 million in all of 2001, and NIS 743 million in equity, as of June 30, 2002.
As far as is known, Schreir is one of Bank Leumi’s partners in Leumi Switzerland, of which Bank Leumi owns 69.3% of the capital and 88.3% of the voting rights. Schreir does not appear to be planning a sale of his Leumi Switzerland holdings. He has no option to sell his holdings, as he did with Leumi UK.
Published by Globes [online] - www.globes.co.il - on February 18, 2003