Alfred Akirov returns to investment in Bank Leumi

Alfred Akirov is again a shareholder in Bank Leumi (TASE: LUMI), through Alrov Properties and Lodgings (TASE: ALRPR(, which he controls with a 79% stake. Last Wednesday night, Alrov participated in a share offering by Bank Leumi, in which it raised NIS 2.75 billion. Alrov invested NIS 100 million.

For Alrov, this is a return to an investment that for years was one of its largest investments in an Israeli company. In 2009, the company’s share portfolio was valued at NIS 920 million, mostly consisting of investments in Bank Leumi (NIS 800 million) and Bank Hapoalim (NIS 109 million). In 2019, Alrov held 4.9% of Bank Leumi, but by the end of 2021 the holding had shrunk to NIS 42 million, and it was liquidated altogether in the first quarter of this year.

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In the past two years, Alrov’s focus has been on Clal Insurance, in which it has a 15% stake, worth NIS 733 million. Alrov has applied for a permit to control Clal Insurance, in order to raise its holding to 30%, but has not yet obtained it. It is too early to say whether the investment in Bank Leumi represents a decision to forego the attempt to obtain permission to control Clal Insurance, but it is certainly a substantial one, especially in the light of the sale of Alrov’s holding just a few months ago.

Altogether, Bank Leumi offered 91 million shares, representing 6% of its issued share capital. The offering is intended to support the bank’s growth strategy.

Apart from the amount raised, the big story of the offering was the purchase by Aaron Frenkel of shares to the tune of NIS 930 million, giving him a 2.1% stake in Bank Leumi.

Published by Globes, Israel business news – en.globes.co.il – on June 26, 2022.

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