FIMI sells Bet Shemesh Engines shares for NIS 100m

Bet Shemesh Engines  photo: Tamar Matzafi

After selling 8% of the company's shares, private equity firm FIMI Opportunity Funds still holds a 35% stake.

FIMI Opportunity Funds, headed by Ishay Davidi, announced last week that it had sold 8% of the shares in Bet Shemesh Engines for NIS 100 million. The company's announcement indicated that the sale, which took place on Thursday, was at a share price of NIS 138, 2% lower than Thursday's opening price on the Tel Aviv Stock Exchange. The company's share price fell 3% in trading, ending up below the price in the sale.

Bet Shemesh Engines' share price fell 13% in the past week, but is still up 60% on the year, putting the company's market cap at NIS 1.2 billion. FIMI's sale of shares left it with a 35% stake in the company having a NIS 420 million market value.

The sale of shares in Bet Shemesh Engines comes only two days after FIMI announced that it had sold shares in Ham-Let Israel Canada for NIS 100 million. FIMI has now sold shares in the faucets and valves manufacturer for NIS 250 million in two months.

Series of large-scale investments

Bet Shemesh Engines manufactures jet engine parts and renovates and assembles engines. The company finished the first nine months of 2019 with a 71% leap to $123 million in revenue and a 128% surge in net profit to $12 million.

The company's financial reports, published in late November, show that its acquisition of Carmel Forge in early January this year supported the positive trend, together with organic growth in the company's long-standing activity.

FIMI's sale of shares in Bet Shemesh Engines follows a string of large-scale investments reported by the fund in the past two weeks. FIMI added to its holdings in Amiad Water Systems with a $36 million investment, bought 12% of the shares in drug company Kamada Pharmaceuticals for $30 million, and increased its stake in satellite communications equipment company Orbit Technologies with an investment of nearly $20 million.

Published by Globes, Israel business news - en.globes.co.il - on December 1, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Bet Shemesh Engines  photo: Tamar Matzafi
Bet Shemesh Engines photo: Tamar Matzafi
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