Through his Eliahu insurance company, Shlomo Eliahu yesterday sold 5.8% of Bank Adanim Mortgages and Loans to United Mizrahi Bank (TASE:MZRH) for NIS 8 million, 17% more than the shares’ market value.
The deal was concluded on the final day of trading in Bank Adanim shares, which will be delisted from the Tel Aviv Stock Exchange (TASE) tomorrow, as decided by the TASE board of directors, after Bank Adanim failed to meet the required minimum proportion of floating shares.
The deal gives Mizrahi Bank a 57.56% interest in Bank Adanim, in addition to control of >a target=new href=http://www.tefahot.co.il/>Tefahot Israel Mortgage Bank (TASE:TFHT), considered Israel’s largest mortgage bank.
The process of delisting Bank Adanim began in January 2002, when it failed to meet the required minimum proportion of floating shares. The public held only 3.96% of the shares, with a value of NIS 4.08 million, while the minimum requirement is 7.5%, or a value of over NIS 8 million.
The TASE board gave Bank Adanim an extension to change the situation. Since it failed to do so, the board decided to delist the bank.
Eliahu has personal holdings in Union Bank of Israel (TASE: UNON) and in Bank Leumi (TASE:LUMI), and was quoted a few days ago as saying that he had no intention whatsoever of selling his Bank Leumi shares.
Published by Globes [online] - www.globes.co.il - on July 1, 2003