Leumi Partners sells Dalia Power Energies stake

Bank Leumi's investment arm will post a NIS 58 million pre-tax profit on the sale

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).

Dalia Power Energies established the largest private power station in Israel, located at the Tzafit site in the Judean foothills near Kfar Menachem. The plant, built by French company Alstom, has a maximum capacity of 900 megawatts. Leumi Partners led the NIS 400 million financing round for the plant from investment institutions, which received an allocation of preferred shares. Leumi Partners itself invested NIS 90 million.

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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 as Senior Lender & Leumi Partners as Investment Banker and Investor

Investment Banker

Leumi Partners- Preferred Equity: NIS 300m from third party investors

Investor

Leumi Partners- Preferred Equity: NIS 120m direct investment

Lender

Leumi- Senior Debt arranger: NIS 3.3B consortium (Leumi’s share – NIS 700m)

Seller

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."

Yaron Bloch Leumi Partners, CEO

Leumi Partners sells Dalia Power Energies stake

Bank Leumi's investment arm will post a NIS 58 million pre-tax profit on the sale

Leumi as Senior Lender & Leumi Partners as Investment Banker and Investor

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