Mizrahi-Tefahot Bank is continuing its non-banking investments. Six months after the initial report on the purchase of the Mifat plant from Lahav L.R, owned by Avi Levi and investment professional Roy Vermus, the bank reports the signing of a principal agreement to launch the deal.
Under the framework, Mizrahi Invest, managed by Shimrit Kenig, will invest NIS 98.8 million, a figure reflecting a valuation for Mifat of NIS 560 million (pre-money) and NIS 658.8 million (post-money). In exchange, the bank will be allocated 15% of Mifat's share capital. The bank will receive an option to purchase an additional 5%, though its total holdings will not exceed 20% of the company's capital, as required by law.
Transaction Terms, Valuation, and Mifat's Operations
Following the transaction, Mifat's equity will grow by NIS 40 million during the third quarter of this year. The option will be granted for a period of up to 30 days from the date of the transaction, at an exercise price of NIS 41 million to NIS 45 million.
Mifat is a private company operating in waste collection and disposal, the operation of transfer stations, waste sorting, and landfilling. Lahav L.R holds 65% of its shares through Lahav Infrastructures.
Mizrahi-Tefahot Bank described the entry as a significant strategic move for Mifat aimed at its continued development, growth, strengthening its equity, and meeting its strategic targets.
IPO Commitments and Banking Sector Real-Investment Expansion
One of the terms of the deal is that Mifat will go public on the stock exchange within five years or be listed in any other way. The bank was also granted an option to sell shares back to the sellers in the event that Mifat is deemed a significant real corporation under the Concentration Law, or due to any other regulatory impediment.
Mizrahi-Tefahot has significantly expanded its activity in the real-investment sector. In doing so, it joins Bank Leumi, the longest-standing institution in real investments, and Bank Hapoalim. Bank Discount and First International Bank of Israel have remained outside the sector at this stage, each for its own reasons.
The shift in strategy has been led over the past four years by Bank CEO Moshe Lari, who views these investments as one of the primary growth engines. The bank's investment arm focuses primarily on investments in infrastructure fields, such as the purchase of 20% of Rimon Power Energy's activity for NIS 70 million and an additional NIS 40 million investment in Care Laser, carried out about a year ago.