Less than two weeks after Shari Arison sold shares in Bank Hapoalim (TASE: POLI) for NIS 1.5 billion, US asset management giant BlackRock has reported that it has acquired a substantial stake in the Israeli bank.
BlackRock has reported that it holds 3.01% of the shares in Bank Hapoalim (about 40.3 million shares) and holds voting rights for 3.81% of the shares of the bank. The shares held by BlackRock are worth more than NIS 1 billion. As there is no controlling core in the bank, any entity holding more than a 2.5% stake in Bank Hapoalim is required to report the matter.
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Shari Arison sells 25% of her Hapoalim stake
Arison sold her shares last month outside of the stock market via investment banks Goldman Sachs and Citi at NIS 25.5 per share, a 4% discount on the market price at the time. She sold 25% of her remaining stake in the bank, with the shares sold representing 4.4% of Bank Hapoalim’s equity. The former controlling shareholder is now left with slightly more than an 11% stake in the bank, after the sale of the latest shares.
The share price when Arison sold her shares was 12% below the all-time high share price for the bank in early 2020.
BlackRock, which as of March 31, 2021 had assets worth $9 trillion under management, reportedly sees Israeli banks as underpriced in relation to their returns on equity, while being a solid investment.
Hapoalim currently has a market cap of NIS 35.5 billion, making it Israel’s most valuable bank.
Published by Globes, Israel business news – en.globes.co.il – on May 2, 2021
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