Group Psagot for Finance and Investments (TASE: GPST) has notified the Tel Aviv Stock Exchange (TASE) that it is in preliminary talks with a third party to sell its holdings in Psagot Investment House.
according to reports, Psagot Investment House has been offered to several institutional bodies including IBI Investment House and the parties are in initial talks.
The announcement by Psagot stressed, "Following enquiries by the media to the company, the company has the honor to inform you that as of this date, non-binding negotiations are underway with various entities for the sale of activities and/or companies in Psagot Investment House, for a total consideration of approximately NIS 320-340 million, on a zero debt, zero cash basis and before tax. As of this date, there is no certainty as to the progress of the talks into a concrete deal and the approvals of the authorized bodies in the relevant companies to enter into binding deals have not yet been received. The company will return and report on the issue as required by law."
Psagot has a market cap and following the announcement its share price rose 14.36%.
In August 2021, Rani Zim completed one of the more surprising moves in his meteoric business career when he bought Psagot Investment House for NIS 405 million from Altshuler Shaham.
In buying control of Psagot, Zim invested close to NIS 130 million of his own capital. But Zim's holdings are now worth only NIS 64 million, meaning he has lost more than half of his investment in just over two years.
Published by Globes, Israel business news - en.globes.co.il - on November 26, 2023.
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