Bank Leumi (TASE: LUMI) recently sold 4% of Kenon Holdings Ltd (TASE:KEN: NYSE: KEN-WI) for NIS 174 million at a 4% premium on the market price.
The shares were sold in two packets to a foreign broker representing Kenon controlling shareholder Idan Ofer. At the same time, Ofer has not yet notified the US Securities and Exchange Commission (SEC) of his purchase.
Kenon was recently split off from Israel Corporation (TASE: ILCO) through a dividend in kind. Bank Leumi, which then owned 18% of Israel Corporation, received 18% of Kenon's shares following the split-off. It now has 14% left with a NIS 587 million market value, after selling 2% last Thursday and 2% more today.
This year, Bank Leumi has begun reducing its exposure to holding companies controlled by Idan Ofer. Two months ago, it sold 6.9% of Israel Corporation's shares to investment institutions for NIS 707 million, and announced that it expected to post a NIS 530 million pre-tax capital gain in the first quarter of 2015.
This sale leaves Bank Leumi with 11.1% of Israel Corporation, and the bank is expected to further reduce its holdings in the company this year.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2015
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