"Buying ownership of a stock exchange in a country with huge potential for long-term growth is one of the best investments that can be made," a statement on behalf of US hedge fund billionaire Bill Ackman and his wife Neri Oxman told "Globes." Ackman and Oxman have bought a 4.9% stake in the Tel Aviv Stock Exchange (TASE) for about $25 million. The statement added, "Investment in the TASE of Start-Up Nation is exactly that. It represents our support for Israel and its economic security and long-term growth."
The shares were bought as part of a secondary offering in which Israeli banks, foreign and mainly local investors sold 18.5% of the shares of the TASE.
First investment in Israel
As far as is known this is Ackman's first investment in an Israeli company. The deal was closed Tuesday evening (Israel time) by Jefferies investment bank, which distributed the shares abroad. The meeting in Ackman's New York office where the deal was signed was attended by TASE CEO Ittai Ben-Zeev, "Globes" has learned.
A source close to the TASE told "Globes," "Ackman's name comes up in every presentation to foreign investors but we never really believed that he would invest. But at the meeting with him he surprised and decided to invest from his own money, and a lot."
With his 4.9% stake Ackman will not become a party-at-interest or join the board of directors. A senior figure in the market said, "The step was taken mainly out of a desire to express support for Israel and because he liked the company. And this gives a positive signal about the value of the share."
Another source said, "This is a major vote of confidence in the Tel Aviv Stock Exchange and the Israeli economy during a time of war. This is an act of Zionism. There are few institutions that are so identified with the State of Israel like the TASE and are also traded companies that can be invested in."
The Israeli institutions that also invested
Other investors in the secondary offering at NIS NIS 20.6 per share, "Globes" has been informed, included Roy Vermus and Shlomi Bracha's Noked Capital Management hedge fund, Migdal Insurance and Finance (TASE: MGDL), Menora Mivtachim Holdings (TASE: MMHD) and Clal Insurance Enterprise Holdings (TASE: CLIS). Market sources believe Migdal bought a 2% stake for NIS 40 million. Of the NIS 350 million raised, NIS 242 million will go to the TASE and the rest to the banks selling shares.
The TASE said that the capital raised will be used for the "development and improvement of the local capital market."
Published by Globes, Israel business news - en.globes.co.il - on January 25, 2024.
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