After it was announced yesterday that, through Arison Holdings, Bank Hapoalim (TASE: POLI) controlling shareholder Shari Arison is selling 49% of her stake in the bank, today it is reported that one of the US financial institutions that is investing in Bank Hapoalim is The University of California Retirement System, which manages $100 billion in a number of funds, each with different investment characteristics.
Shari Arison is selling 49% of the controlling interest in Bank Hapoalim, which consists of 20% of the shares in the bank, to three North American investors, one of which is now known to be The University of California Retirement System.
The deal is based on a share price of NIS 24.82 for Bank Hapoalim, which is currently traded at NIS 24.86. The share price is up 1.06% so far today, having risen by 1.95% yesterday. The price of NIS 24.80 gives a total of NIS 3.3 billion for the 10% stake being sold. The shares actually being sold, however, are in Arison Holdings, which has debts totaling NIS 1.8 billion. The estimated amount that Arison Holdings will eventually receive is about NIS 2.4 billion.
The deal has not yet been finalized, and is subject to due diligence and regulatory approval, a process that could take months. The Bank of Israel has already indicated that it views the deal positively, and unless its examinations uncover something exceptional it is expected to approve it.
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2017
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