Stakeholder activity in 2020 – despite the Corona crisis – Stakeholders sold to the public in 2020, net, shares worth NIS 3.2 billion: a combination of selling shares to the public worth NIS 5 billion, with the purchase of shares from the public worth NIS 1.8 billion Share sales, net, this year by stakeholders raised the public holdings rate to 64%.
Share purchases by stakeholders, which are usually made during downturns, amounted to NIS 1.8 billion in 2020. Share sales by stakeholders in 2020 amounted to NIS 5 billion this year, so that in the year’s total sales, net, p. Stakeholders in the amount of NIS 3.2 billion.
Share sales by stakeholders in 2020 raised the public holdings rate at a moderate rate to 64%.
Stakeholder activity this year was relatively moderate, compared with 2019, in which stakeholders sold shares worth NIS 5.5 billion, mainly due to the Centralization Law, which by the end of 2019 the controlling shareholders and companies had to meet.
Stakeholder activity in 2020 was affected by much volatility in stock prices due to the corona crisis. During the sharp price declines at the height of the Corona crisis, stakeholders purchased shares at relatively marginal amounts as they were presumably preoccupied with running their business while dealing with an unprecedented external event. Most sales were in the first month and a half of the year – until the outbreak of the corona plague and resumed after the stock market recovered in the second half of the year.
The most notable sales of shares by stakeholders this year were:
“Discount Investments” sold all its 26% shares in Shufersal in July for about NIS 1.45 billion. The sale took place after about two years ago DSK sold about 24% of Shufersal’s shares for NIS 1.3 billion and ceased to control it.
At the beginning of March, Bank Hapoalim distributed 33% of the shares of the Isracard credit card company as a dividend in kind to the bank’s shareholders worth about NIS 673 million. The operation was carried out following the recommendations of the Strum Committee to increase competition in the banking industry in Israel, among other things by separating the ownership of credit card companies from the banks, which required the bank to sell the balance of its holdings in Isracard by the end of January 2021. Following the move, the rate of public holdings in Isracard rose from about 67% to about 95%.
The Gazundheit family sold the remaining 8.1% of its shares in Arad Investments in February for about NIS 210 million, a year after it sold about 24.5% of the shares worth about NIS 510 million. These sales, which significantly increased the public’s holdings, led to the company entering the TA-90 and TA-125 indices in February 2020.
In February, the Shapira brothers sold Shafir Engineering shares worth about NIS 201 million, which is about 2.2%, and today they hold about 60.5% of the company’s shares. It should be noted that about two years ago they sold shares of similar value in order to increase the rate of public holdings in order to enter the Tel Aviv-35 index.
“Danya Cebus” sold about 18% of Africa Residential shares worth about NIS 200 million. The sale took place in January, shortly after control of Danya Cebus was transferred as part of the creditors’ arrangement in the Africa Group, to Lapidot Capital, which is controlled by Yaakov Luxembourg. This action, which increased the public holdings in the company to approximately 44% and led to its entry into the TA-90 and TA-125 indices in August 2020.
“Properties and Building” sold about 5% of Gev-Yam shares in May, worth about NIS 191 million, after in 2019 it sold properties and building about 16.8% of Gev-Yam shares, thus ceasing to be a stratum member of the Discount Investments Group.
Brothers Yosef and Shlomo Amir sold in April and September, for about NIS 170 million, about 10% of Freshmarket’s shares, which were first issued on the stock exchange in May 2019.
In May, Kibbutz Dalia sold about 12% of Arad’s shares worth about NIS 156 million, and currently holds about 15.4% of the company’s shares.
“Bituach Yashir” sold institutional investors about 12% of direct financing shares worth NIS 153 million in November, about three months after its first IPO.
The most notable acquisitions of shares by stakeholders this year were:
In the second half of the year, Aharon Frenkel purchased Gev-Yam shares worth NIS 880 million and reached a 18.5% holding in the company, with the aim of taking over the company.
In the third quarter of this year, the Ofer Wertheim families purchased shares in Mizrahi-Tefahot Bank worth NIS 286 million, which constitutes approximately 1.4% of the Bank’s shares.
In March-May, Mega Or acquired about 4% of the shares in Efi Properties, worth NIS 174 million.
The table below includes all the companies in which the sales or purchases of shares by stakeholders were worth more than NIS 20 million. These transactions included sales offers in a trading company, the sale of dormant shares and the distribution of dividends in kind. These transactions did not include: stakeholder sales to stakeholders Others who have not increased the share of public holdings, selling bids in initial public offerings, in-house purchases of shares and acquisitions of stakeholders in takeover bids, issues and private placements.