These sales were designed, among other things, to increase the free float, with an eye to improving the companies’ position in the Tel Aviv Stock Exchange’s (TASE) flagship indices. In February 2017 TASE implemented a reform of its equity indices, which increased the number of constituent shares in flagship indices and raised the public float criterion for inclusion in them. In addition, the weight cap of a single share in an index was lowered, generating an increase in the relative weight of mid-cap shares in the indices.
The Law for the Promotion of Competition and Reduction of Concentration,) the “Concentration Law”) also generated interested party sales to comply with the law’s requirements.
The largest sell-offs so far this year included:
- Zadik Bino’s sale of his remaining holdings in the Paz Oil - 7.2% of the company’s shares for NIS 426 million, in order to meet the requirements of separating real and financial holdings under the Concentration Law. The Lieberman and Abeles families followed suit, selling shares worth NIS 163 million.
- The sale of 8% of Oil Refineries by the Israel Corporation (NIS 200 million) and Petrochemical Enterprises (NIS 172 million).
- The sale of 12% of Carasso Motors for NIS 318 million by Haim Danon – a sale which increased the company’s free float, enabling its entrance into the TA-Growth share price index. It is worth noting that the company completed a large public offering in June, which could pave the way for the share’s upgrade to the TA-90 index on the next index rebalancing date, at the end of trading on August 3rd.
Other prominent sellers during the first semester of the year include investment funds: D.B.S.I. Investments, which sold holdings in Danel Human Resources and the Shagrir for NIS 173 million; Battery Ventures, which sold I.D.I. Direct Insurance for NIS 104 million; and the Fidelity Funds Group, which sold shares in Rami Levi for NIS 78 million.
In addition, during the first half of the year, a number of initial public offerings (IPOs) which included shareholder sale offers , commanded attention – Aeronautics (NIS 404 million), Novolog (NIS 280 million) and Telrad Networks (NIS 82 million). The proceeds from these sales are not included in this review.
The table below summarizes all sales exceeding NIS 10 million. These transactions do not include sales by interested parties to other interested parties, i.e., transactions which did not increase the free float of the relevant shares.