Liberman family sells part of First Int'l Bank stake

FIBI Photo: Tamar Matsafi
FIBI Photo: Tamar Matsafi

Zadik Bino's Australian partners in First International Bank parent FIBI have sold 4% of shares for NIS 80 million.

Australia's Liberman family, Zadik Bino's First International Bank of Israel (TASE: FTIN) controlling interest partners sold 4% of the shares of FIBI Holdings Ltd. (TASE: FIBI), through which the bank is controlled, for NIS 80 million. The shares were sold for NIS 56.30, 3% lower than the stock exchange closing price yesterday. FIBI share prices have jumped over 10% in 2016, reflecting a market cap of NIS 2.06 billion. The Libermans now have a 11.7% stake in FIBI.

According to the stock exchange announcement, the shares sold were the Liberman family's free shares, while the remaining shares are defined as the bank's controlling shares. Therefore, it the Libermans seek to sell further shares, they will have to either sell them to Bino or initiate a process of dismantling core control of the bank. The family's stake is held by Dolphin Energy via various Australian entities by Leigh Liberman, Joshua Liberman, Cassy Liberman-Harris and Berry Liberman, the descendants of Jack Liberman, who passed away over a decade ago.

The Libermans also maintain holdings in FIBI via Instanz Holdings, which it controls together with the Abeles family; Instanz is used to control shares in Paz Oil Company Ltd. (TASE:PZOL), which is also controlled by Bino.

Due to the Promotion of Competition and Reduction of Concentration Law, prohibiting a parallel control of a large non-financial corporation and a financial entity, Bino and the Libermans will have to sell their holdings in either Paz or the First International Bank in the next few years. Last week, Bino received approval to sell his Paz shares on the stock exchange, rather than to a controlling shareholder. At the same time, it is possible that Bino will sell his holdings in the First International Bank, or possibly both.

Bino and his partners, the Australian Abeles and Liberman families, are controlling shareholders (30.15%) in Paz, as well as the controlling interest in FIBI, which controls the First International Bank with a 48.3% stake. The Promotion of Competition and Reduction of Concentration Law, that came into effect in late 2013, forces Bino and his partners to choose between control of the non-financial (Paz) and the financial asset by the end of 2019.

However, if until now Bino and his partners had been obliged to sell control of Paz to an investor or an investor group vetted by state institutions (due to its control of the Ashdod refineries), if they decide to continue controlling the First International Bank, the approval they recently received will enable them to sell controlling shares in Paz to the general public via the stock exchange.

Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2016

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

FIBI Photo: Tamar Matsafi
FIBI Photo: Tamar Matsafi
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