Looking for an exit from the Naoi brothers? Altshuler Shaham sold shares for NIS 35 million

On the way out? Last Monday, Altshuler Shaham Investment House made a concentrated sale of shares in the Naoi Brothers company worth almost NIS 35 million. This reduces Altshuler’s total holding in the non-bank credit company to a value of NIS 108 million, to 16.5% compared to a holding of 21.4% before the sale.

The current sale of Altshuler Shaham is being done after he already in 2020 acted to reduce its holdings. Throughout last year, the investment house reduced its holdings in the company to 21% compared to a previous holding of 26%.

Altshuler Shaham’s sales are being made despite good results from the Naoi brothers for 2020, which the company reported last week. The Naoi brothers’ net profit jumped by 42% last year and amounted to NIS 74 million, compared with a net profit of NIS 52 million in 2019. This, while improving the portfolio and reducing it to NIS 1.8 billion.

The improvement of the portfolio and the increase in equity resulted in a risk reduction and a dramatic reduction of 84% in expenses for doubtful debts, which amounted to NIS 4.5 million. Also, in the fourth quarter, doubtful debts that were recorded as recovery were even collected. The company’s strategic plan is to increase the credit portfolio gradually and in accordance with market conditions to approximately NIS 3 billion in March 2022.

The company’s revenues, on the other hand, fell by 12% to NIS 136 million against the background of the reduction in the portfolio. Altshuler Shaham’s sales move was made against the background of a business dispute created between the brothers. At the end of last May, Shaul Naoi, the older brother of the two, announced that he intended to resign from his position as co-CEO of the company he founded with his brother Dori Naoi.

At the same time, Shaul sold his share in the company (17.4%) to Dori. About two weeks ago, it was revealed in “Calcalist” that at a certain point Shaul wanted to return to the company, but Dori, who holds 39%, refused. The company then accused Shaul Naoi of setting up a competing business while serving as co-CEO of the Naoi brothers and of exploring the legal options available to him.

In closed talks, Altshuler Shaham’s investment managers suspended the sale of the Naoi brothers’ shares in 2020, wanting to reduce their holdings in the Israeli stock market in general. Was the sale on Monday also due to the same reason? hard to believe. The Naoi brothers’ share has climbed 24% since the beginning of the year (as of yesterday’s price). The company’s market value is NIS 700 million.