Nehama to buy controlling stake in Jerusalem Economy

Shlomo Nehama  photo: Eyal Yitzhar
Shlomo Nehama photo: Eyal Yitzhar

The former Bank Hapoalim chairman agreed to buy Leumi Bank’s holdings and inject NIS 150 million.

Former Bank Hapoalim (TASE: POLI) chairman Shlomo Nehama is making a comeback. Jerusalem Economy Ltd. (TASE:ECJM) (JEC) informed the Tel Aviv Stock Exchange (TASE) on Thursday that Nehama signed an agreement to buy the controlling interest in the company from Leumi Bank (28%).

The negotiations were held with Adv. Ronen Matry and Eyal Rozovsky and were not intended to derail the company’s public share offering.

Market insiders believe Nehama will hold at least 25% of the shares and inject at least NIS 150 million during the offering.

Earlier in the week, on Monday, Nehama backed out of the potential deal to buy the controlling interest in Jerusalem Economy from Leumi Bank. Before the deal was to be signed, Nehama claimed it required raising 400-600 times more capital than was initially discussed, leading him to decline his signature.

Under the rejected framework, Nehama was to provide at least NIS 200 million to Jerusalem Economy in a rights offering and receive the shares Eliezer Fishman the former controlling interest in Jerusalem Economy put up as collateral for a private debt to Leumi Bank.

Meanwhile, Jerusalem Economy CEO David Zvida is continuing to advance a share offering of similar size to the initial deal with Nehama of half a billion shekels while selling off assets to assure the company can fulfill its financial commitments.

Eliezer Fishman is the controlling shareholder in “Globes”.

Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Shlomo Nehama  photo: Eyal Yitzhar
Shlomo Nehama photo: Eyal Yitzhar
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