Migdal sells 3.7% of Fattal to Phoenix

David Fattal Photo; Eyal Izhar
David Fattal Photo; Eyal Izhar

Migdal has made a ten-fold return on its investment in 11 years.

Insurance and financial company Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL)l yesterday announced that it had sold 3.7% of Fattal Holdings' shares for NIS 220 million in two off-floor deals. The deal leaves Migdal with an 8.8% stake in Fattal, whose market cap is NIS 6.2 billion. As far as is known, the buyer of Migdal's shares was insurance and financial group The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), which has not previously held shares in Fattal.

The deal is an especially successful one for Migdal, which made a very fine return on its investment. Migdal, which originally invested NIS 120 million in Fattal 11 years ago, has made a ten-fold return on the investment, including dividends. Migdal's remaining stake in Fattal is currently worth NIS 560 million.

Fattal held its IPO on the Tel Aviv Stock Exchange (TASE) in February 2018. Migdal's stake in the company before the offering was 18.5%. Migdal has since reduced its holdings through a number of deals. Fattal's share price has climbed 40% to NIS 432 since its IPO.

The controlling shareholder in Fattal is company founder, chairperson, and CO David Fattal, with a 60% holding. Hadassah, his divorced wife, holds 7.6%, Migdal 8.8%, Altshuler Shaham investment house 5.3%, and now Phoenix with 3.7%.

Fattal currently has 39,000 hotel rooms in 204 hotels in 18 countries, including hotels under construction, leased hotels, and agreements to manage or lease hotels under construction. The company's brands are Leonardo, Herods, Apollo, Jurys Inn, NYX, and U. The chain has 42 hotels in Israel: 25 fully or partly owned, 13 leased, and four managed.

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

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

David Fattal Photo; Eyal Izhar
David Fattal Photo; Eyal Izhar
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