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.

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).

“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,” Leumi Partners CEO Yaron Block said.

Leumi Partners chief investment officer and managing director Saar Avnery and deputy CEO and general counsel Michal Rabinovitch led the sale process, assisted by Meitar Liquornik Geva Leshem Tal law firm partner Adv. Ariel.

Published by Globes [online], Israel business news – www.globes-online.com – on April 3, 2016