Leumi Partners Ltd., the investment arm of Bank Leumi (TASE: LUMI), completed the sale of its entire holdings in Dalia Power Energies at the end of last week for NIS 187 million, and will post a NIS 58 million pre-tax capital gain in its report for the first quarter of 2016. The buyers are Caesarea Medical Electronics, controlled by Zvi and Anat Barak, and Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS).
The sales of its holdings in Dalia Power Energies is a direct continuation of the sale of Leumi Partners’ holdings and liquidation of its non-financial investments, which has been going on for over a year, for example shares in Israel Corporation (TASE: ILCO) and the liquidation of its investment in Derech Eretz Highways (the operators of Highway 6).
Leumi Partners- Preferred Equity: NIS 300m from third party investors
Leumi Partners- Preferred Equity: NIS 120m direct investment
Leumi- Senior Debt arranger: NIS 3.3B consortium (Leumi’s share – NIS 700m)
03/2016 – liquidation through private sale to institutional and HNW investors
"Our unique merchant banking platform, with all of its advantages, was reflected in this deal, while the company's consultation and underwriting arm organized the financing round for preferred shares, and our investment arm made the investment, thereby completing the overall increase in value for Leumi Partners. The result is a successful exit and a handsome profit within a short time span."