Bank Leumi distributed the shares to comply with the order to reduce its non-financial holdings.
Bank Leumi (TASE: LUMI) last night began distributing shares of Israel Corporation (TASE: ILCO), controlled by Idan Ofer. Leumi distributed up to about 5% of the shares in the company to institutional bodies at a 5% discount on the market price. Due to excess demand Bank Leumi eventually sold a 7% stake for NIS 700 million. Prior to the sale, Bank Leumi held an 18% stake in Israel Corp.
The sale of the shares followed the conclusions of the committee on business concentration, which prohibits major financial bodies from holding major stakes in non-financial companies.
Two weeks ago, Bank Leumi announced that it expected to write down $400 million in its financial report for 2014 following the split off some of Israel Corp's holdings into Kenon Holdings Ltd (TASE:KEN: NYSE: KEN-WI). The amount of the write down will grow or shrink depending on the companies being transferred in the split in the fourth quarter of 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2015
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Rakefet Russak-Aminoach