Bino Holdings, the company through which Zadik Bino holds his stake in Paz Oil Company Ltd. (TASE:PZOL), notified the Tel Aviv Stock Exchange this morning that it had agreed to sell 605, 734 shares in Paz to a financial company in an off-floor transaction, for distribution to investment institutions. The sale will take place today. The price in the transaction is NIS 580 per share, giving a total consideration of NIS 351 million. The block of shares being sold represents about 4.7% of Paz.
Shares in Paz are currently down 1.19% on the Tel Aviv Stock Exchange, at NIS 590.
Bino's partners in Paz, the Liberman and Abeles families of Australia (the former through Dolphin Energy, and the latter through Instanz Holdings) have the right to join the sale within 14 days, and sell up to 209, 266 Paz shares at the same price, that is for NIS 121 million. This represents about 1.2% of Paz. If they do not exercise this right, Bino Holdings will sell the quantity of shares not sold by them, at the same price.
The notification to the stock exchange states that, either way, following the additional sales Bino Holdings, Dolphin Energy and Instanz Holdings will cease to be parties at interest in Paz.
Today's notice follows a notice from yesterday in which Bino Holdings announced that on March 23 it sold a block of shares representing about 1% of Paz, also at NIS 580 per share, for a total consideration of some NIS 75 million, with the Liberman and Abeles families having the right to sell 39,604 shares. Again, Bino Holdings will sell those shares if the right is not exercised.
Altogether, in the current sales, Bino will have sold Paz shares to the tune of a possible NIS 672 million, and taken his holding to below 5%.
Since Bino became the controlling shareholder in Paz in 1999, the company has generated the huge value of over NIS 5 billion for him. Discounting the amount he has invested in Paz, estimated at around NIS 1.2 billion, the investment has produced a cumulative gain of some NIS 4 billion. Most of this has been in dividends distributed by Paz to Bino and in sales of parts of his holding in the past few years.
The sale of shares in Paz, which owns the Ashdod Oil Refinery, is designed to comply with the Law for Promotion of Competition and Reduction of Concentration, which prohibits simultaneous control of large financial and non-financial companies. Besides his holding in Paz, Zadik Bino is also part of the controlling interest in First International Bank of Israel (TASE: FTIN).
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2017
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