Israeli businessman Aaron Frenkel has sold about 31 million shares in Bank Leumi (TASE: LUMI) (about a 2% stake in the bank) in a distribution on the market for an estimated NIS 1.4 billion. The deal was conducted through J.P. Morgan in Israel.
The deal comes about 30 months after a huge share offering by the bank, in which key figures in the Israeli economy like Frenkel participated. He was believed to be the biggest buyer in the offering, while others who participated included Alfred Akirov, through Alrov Properties and Lodgings (TASE: ALRP).
As far as is known, Frenkel has now sold the Leumi shares at a discount of up to 3% on the share price through J.P. Morgan. Leumi's share price began the trading day on the Tel Aviv Stock Exchange (TASE) on Tuesday at a price of NIS 46.2. Trading closed with a slight decline and a not unusual turnover of NIS 139 million. The discount means that the share price in the deal was about NIS 44.8, and so the stake fetched about NIS 1.39 billion. After the deal, Frenkel will still hold a smaller stake in the bank.
Bank Leumi, managed by CEO Hanan Friedman, is the largest bank in Israel in terms of market cap, which is worth NIS 69 billion, ahead of Bank Hapoalim (TASE: POLI), which has a market cap of NIS 63 billion.
In June 2022, Leumi issued shares worth NIS 2.75 billion, selling 91 million shares at a share price of NIS 30.25. Frenkel purchased shares for about NIS 1 billion and reached a holding of several percent – less than the threshold to make him a party-at-interest in the bank, which would have required him to report on current stock transactions.
Those who purchased Leumi shares in the offering at that time, when global interest rates were just beginning to climb from zero, correctly called the surge in bank profits following the subsequent interest rate hikes. Bank Leumi's shares have since soared 52% from the price of that offering, while the banks have also distributed dividends that have resulted in shares' buyers recording handsome gains.
Frenkel has proven in recent years, that he is one of the shrewdest investors on the TASE. At the end of September 2024, he bought 3.5% of the Tamar reservoir from Harel and the Israel Infrastructure Fund for NIS 1 billion. Following that deal, he reached a stake of about 20% of the Tamar gas field directly and 14.5% indirectly through Tamar Petroleum (TASE: TMRP). In the past, he has completed successful deals in shares of BaySide Land Corp. (Gav-Yam) (TASE: BYSD) and drone manufacturer Aeronautics.
Published by Globes, Israel business news – en.globes.co.il – on January 22, 2025.
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