The Dankner family is continuing to sell its holdings. Following the sale of Dankner Investments (TASE:DKNR) to Yitzhak Tshuva's Delek Group (TASE:DLEKG), Israel Salt Industries (TASE:SALT), which is controlled by the family, has begun the sale of part of its stake in Bank Hapoalim (LSE:BKHD; TASE:POLI).
Sources inform “Globes” that Salt Industries and Arison Holdings sold 36.2 million shares (2.9% of the bank's shares) to UBS (SWX:UBS) at NIS 12.60 a share for a total of NIS 456 million. The sale was made at a 3% discount on Bank Hapoalim's share price on the Tel Aviv Stock Exchange (TASE) yesterday.
UBS has an option to increase its purchase to 53 million Bank Hapoalim shares, amounting to 4.2% of the bank. If UBS exercises this option, the proceeds from the sale will amount to NIS 668 million.
Arison Investments and Salt Industries have promised not to sell any more Bank Hapoalim shares for three months.
Arison Investments owned 20.7% of Bank Hapoalim prior to the sale, and Salt Industries owned 10.9%.
It was reported recently that Salt Industries would probably sell part of its Bank Hapoalim stake, in order to defray the heavy debt it took to buy the holding. Bank Leumi (TASE:LUMI) provided most of the financing. When Salt Industries had an opportunity to sell Bank Hapoalim shares, which are trading at an all-time high, it seems that Arison Investments decided to participate in the transaction.
Published by Globes [online] - www.globes.co.il - on September 27, 2004