The State has decided to sell its remaining 6.03% stake in Bank Leumi (TASE: LUMI), as previously reported by "Globes." The sale must first be approved by the Knesset Finance Committee. Accountant-General Michal Abadi-Boiangiu, chair of M.I. Holdings, which holds the shares on behalf of the government, last night consulted with the Finance Committee chairman MK Nissan Slomiansky (HaBayit Hayehudi) and made a formal request from the government on the matter.
The 6.03% stake in the bank is currently worth more than over a billion shekels. The sale of the shares will take place within 12 months of the date on which the Finance Committee grants approval. The sale will be made in several stages and the timing will depend on market conditions.
It is believed the catalyst for the government's decision was the recent shareholders meeting at which senior executive remuneration was discussed. The State was opposed to the plan and Minister of Finance Yair Lapid felt it was not commensurate. The Finance Ministry had expected institutional investors to support the government's policy on the matter but they preferred to support the plan. The Ministry of Finance was disappointed and realized that even with a 6% holding it had no influence on policy.
Three years ago the government sold a 5% stake in Bank Leumi for NIS 1.3 billion.
The shares that will now be sold are the last stake the government has in the banks following the nationalization of the big banks in 1983 during the bank shares crisis.
Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2014
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