Businessman Zadik Bino and the Liberman Group today announced they would acquire control in FIBI Holding, the parent company of The First International Bank of Israel from brothers Joseph and Moise Safra. Bino and Liberman bought approximately 52% capital share and 70% voting rights from a holding company owned by the Safra brothers, for $90 million cash. The price reflects a 20% premium over the market price, but only half FIBI's equity, and that of the bank it controls.
Bino told ''Globes'' today: "We'll put up our own money to buy FIBI, no loans and no fuss". According to Bino, "I understand banking, it's my profession, the place I've spent most of my years and I think that as owners, we can operate successfully". As for the timing of the purchase, Bino said, "This is a good time, as I believe that Israel's situation will stabilize. I have faith in the state".
Bino is expected to control FIBI on his own, with the Liberman family serving as a financial partner, similar to their arrangement with Paz Oil Co. Bino Holdings will own 55% of the controlling share bloc, and the Liberman group will own the remaining 45%. Bino will apparently be nominated chairman, replacing Shlomo Piotrkowsky, while CEO David Granot is expected to continue serving in his post.
In recent years, the 59 year-old Bino has become one of Israel's most prominent businessmen, due to his acquisition of control in Paz. He tried, unsuccessfully, to gain control of Elite Industries, Bezeq (TASE:BZEQ), and Pele-Phone. Recently, as part of a Bank Leumi-led (TASE:LUMI) group (Leumi is a partner in Paz), he also attempted to gain control of Blue Square Israel's (NYSE: BSI; TASE:BSI) supermarket chain.
The capital market knows Bino as a cautious businessman, who doesn't mix business with emotion. Indeed, today he said that acquiring FIBI was not a lifetime aspiration, although it was hard to ignore the fact that he began his professional career as a teller at the bank. In 1978, he was named CEO of the bank; he left in 1986 to helm a far bigger bank, Leumi. Two years later, he left that post as well, this time to represent Australian millionaire Jack Liberman. Bino became acquainted with Liberman's business affairs when the latter was involved in acquiring control of Paz.
Over the past 15 years, Bino has amassed both wealth and property, which have transformed him into a legitimate contender for almost any major business put up for sale. In December 1988, as head of a group that included Ehud (Udi) Ben-Shach (another Paz partner), and Avraham Biger, he concluded the acquisition of tin can manufacturer Caniel from Discount Investment Corporation (TASE:DISI) for NIS 252 million. Caniel subsequently implemented a rehabilitation program that included downsizing - firing hundreds of employees - and splitting off the company's real estate assets from its industrial activities. Recently, Bino made an offer to purchase Caniel's shares and delisted them from the stock exchange.
A year after buying Caniel, Bino made his most significant business move - up until today - by acquiring control of Paz. In 1997, Jack Liberman passed away and for the next two years, his heirs continued to hold the controlling share bloc in Paz until a decision was made to sell off a portion of the shares. Bino bought most of the family's holdings, along with shares owned by the Renaissance Fund, attaining a 60% share in Paz.
In January 2001, Bino recouped a significant portion of his investment when he, along with the Liberman family, sold 19% of Paz shares to Bank Leumi for $85 million, at a company value of $425 million. Following the sale, Bino's stake in Paz was diluted to 51%, while the Liberman heirs now owned 21%.
Aside from control in Caniel, Paz (including its real estate subsidiary Sahar Development and Investments Ltd.), and now FIBI, Bino owns 17% of Second Broadcasting Authority (Channel 2) franchisee Reshet Television, and around 25% of Kesher-Barel MacCann Erickson, along with other assets, mainly real estate, in and outside Israel.
Published by Globes [online] - www.globes.co.il - on 27 April 2003