Leumi sells 5.3% Aeronautics stake to Aaron Frenkel

Aaron Frenkel Photo: Eli Etkin

After also buying an additional 4% stake in the Israeli UAV developer earlier this week, Frenkel now has a 30% stake in Aeronautics.

Israeli businessman Aaron Frenkel has acquired a further 5.3% equity stake in Israel UAV developer Aeronautics (TASE: ARCS) for NIS 42 million from Bank Leumi (TASE: LUMI). Frenkel paid Leumi NIS 14.71, a 7% premium on the share price, and giving a company valuation of about NIS 800 million.

Earler this week Frenkel acquired a 4% stake in the company and following his latest acquisition from Bank Leumi, he holds a 30% stake in Aeronautics.

As part of the deal with Leumi, Frenkel agreed that if Aeronautics is sold in the next six months for more than NIS 800 million, he will pay 50% of the amount above NIS 800 million on the 5.3% stake he bought from the bank.

Frenkel (61), whose main business activities are in real estate and aviation, started to amass Aeronautics shares in the last week of December, when he bought 5.5% of the company from Phoenix at NIS 8.5 per share, 25% more than the market price at the time. He bought further shares in the weeks that followed.

Published by Globes, Israel business news - en.globes.co.il - on February 14, 2019

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

Aaron Frenkel Photo: Eli Etkin
Aaron Frenkel Photo: Eli Etkin
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