This is a good move for investors as the amount of flooding was small and following the sale the stock is expected to be more tradable.
The sale to institutional investors was made at a price of NIS 261 per share, a discount of about 3% of the share price in the market (base price today: NIS 269). The company is trading at a multiplier of 35 and the average daily trading volume in the stock in the past year is NIS 130,000. Following the sale, the Pimi Fund and the Algarbeli family will continue to hold 43% and 30% of the company’s shares, respectively.
In recent years, Rekach has shown stable revenues of NIS 200 million each year, in 2016-2017 the company’s losses have deepened to NIS 17-25 million, and since 2018 it has moved to a net profit in the bottom line of NIS 4-9 million per year.
In 2015, the Pimi Fund purchased approximately 42.6% of Rekach shares at a value of approximately NIS 108 million, and subsequently increased its holding to approximately 51.6%. Today, the company’s value is about NIS 310 million, and since the acquisition the share has climbed more than 60%.
Yishai Davidi, chairman and founder of the Pimi Fund, was chosen as one of the people of the year by BizPortal surfers; Pimi is the most successful investment fund that has been here and it is also successful at a world level. This year it came in 2nd place! Including cement at the end of the year), huge fundraising and improvements by a number of companies (including Polyram at the end of the year).
Davidi, manages to generate investors in his funds an annual return of over 20% and he does so for decades (more than 25 years). The fund acquired close to 100 companies, most of which already had exits (64 companies!). Davidi is actually the Israeli “Mr. Exits” when on the way he praises dozens of listed companies (for the full interview).
The Phimie Fund is a private equity fund with assets under management of approximately $ 5.5 billion. Investors in Pimi funds are about 50% foreign, which includes some of the largest institutional and private entities in the world, including banks, state-owned funds, insurance companies, pension funds, universities, world-leading private investors, international giants and more, and about 50% Israelis, including Banks, insurance companies, large and leading institutional bodies in Israel, universities, private investors and more.
The fund acquires control of companies and implements improvement processes in them. To date, the fund has acquired control of about 93 companies and has realized about 63 of them in a volume of transactions of more than $ 5.5 billion. The fund employs more than 30,000 people and operates in about 50 factories in Israel and another 100 factories and companies around the world.
Phimie invests in Israeli companies and companies that have an affinity for Israel and has to date invested in companies such as Retalix, Rivlis, Novolog, Magal, Hamlet, Tami 4, Ormat, Ofir, Scoop, Medtechnika, Hamat, Gilat Satellite Systems, Metro Motor, Tat Technologies, Ordan, Aloni , Itung, Carmit, Nirlat, Tadiran Kesher, Lipman, Formula Systems, Orian, Rebel, Priortech, Solver, Dimmer, Givon, H. Mr., Overseas, Hadera Paper, Oxygen and Organization plants, Polyram, Unitronics, Galam, Delek-San, G1 Security Systems, BIRD, Orbit, SOS Energy, Simplia, Stern, ImageSat, Aitech Kamhada, Rimoni, Ben Ari, Rafa and more.