Leumi sells remaining Partner stake for NIS 140m

Bank Leumi lost 15% on its investment in the mobile carrier.

Bank Leumi (TASE: LUMI) has sold its remaining 3% stake in Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) for NIS 140 million. Through Leumi Partners, the bank sold the stake at NIS 31 per share, 2.5% below today's opening price.

By mid-afternoon, Partner's share price was down 1.6% to NIS 31.25, on the day's biggest turnover of NIS 170 million.

Leumi Partners bought 5% of Partner four and a half years ago for NIS 515 million. Following Bank Leumi's large write-down on the investment in the past few years, due to the collapse of the mobile carriers' share price, the bank will report a profit of NIS 70 million on the sale.

Bank Leumi sold its Partner shares, after they rose 50% in the past 12 months, boosting its market cap to NIS 4.9 billion. The bank sold 2% of Partner to Haim Saban, when he acquired control of Partner a year ago through Saban Capital Group Inc. The sale at NIS 26 per share totaled NIS 63 million.

Taking into account Partner's dividends, fees on Ben-Dov's acquisition of Partner in 2009 and Leumi Partner's stake in the bonds of his company Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF), Leumi Partners lost 15% on its investment in the mobile carrier.

Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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