JERUSALEM (Reuters) – Arison Holdings said on Tuesday it was selling a 4.26 percent stake in Bank Hapoalim <POLI.TA>, Israel’s largest lender, to institutional investors for 1.425 billion shekels ($385 million).
Arison Holdings, owned by U.S.-Israeli billionaire Shari Arison, is Hapoalim‘s controlling shareholder and has for years looked to reduce its holdings in the bank.
Arison is selling 57 million shares at 25 shekels each. Upon completion of the deal, Arison’s stake will fall to 15.75 percent.
Bank of America Merrill Lynch and Citi are joint bookrunners for the sale. Barak Capital is acting as the Israeli selling agent.
The decision to sell the shares follows approval from the Bank of Israel for Arison to unwind its controlling shareholding in the company. Arison’s control permit will be cancelled and replaced by a holding permit.