Zadik Bino, who has held a controlling interest in Paz Oil Company Ltd. (TASE:PZOL) for 17 years, sold part of his stake today, bringing him below the minimum holding necessary for control. Bino also resigned as a director of Paz, along with three other directors associated with him.
Bino Holdings sold 14,093 ordinary shares in Paz in an off-floor transaction today, at a price of NIS 582.66 per share. Bino Holdings also committed to selling a further 4,313 shares at the same price. When the sale transactions completed, the holding of the present controlling interest in Paz will fall below 30%. The control permit for Paz Ashdod Refinery Ltd. given to the controlling shareholders in 2006 becomes void, and the new control permit recently given to Paz Oil Company in the event that there is no controlling interest comes into force.
The sale of shares 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).
The company said in a press release, "Mr. Bino faced two choices for implementing the provisions of the Law for Promotion of Competition and Reduction of Concentration that was forced upon him three years ago: selling his holding in First International Bank or selling his holding in Paz. Putting the interests of the company and the investment community first, Mr. Bino chose to sell his holdings in a decentralized fashion rather than sell a controlling interest. Following the sale, the holdings of the controlling interest have fallen below 30%, and Mr. Bino thus loses every vestige of control in Paz (despite the percentage of shares remaining in his hands) and he is entitled to vote as an owner of a 5% stake only, as stipulated in the alternative control permit that now comes into force."
Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2016
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