Tzvika Barinboim's BGI Investments is in talks with one of the big Israeli banks for the sale of Industrial Development Bank's loan portfolio, barely two months after BGI acquired the bank from the state. It is unclear whether BGI wants to sell the entire portfolio or just part of it.
BGI beat Mizrahi Tefahot Bank and Bank of Jerusalem in the tender for Industrial Development Bank, paying the state NIS 572 million. The bank's loan portfolio is valued at about NIS 407 million. The bank also has NIS 270 million in equity, a collections and loan system and NIS 550 million in accumulated losses for tax purposes, which make it eligible for a tax shield of NIS 140 million.
TheMarker's analysis of Barinboim's purchase of the bank concluded that he was obviously planning to flip its loan portfolio quickly and turn the bank's platform into a cash cow. When he completed the acquisition, Barinboim said his calculations showed that he essentially paid NIS 300 million for the loan portfolio. The price he will ask for that part of the bank will therefore be considerably more than NIS 300 million.
If Barinboim opts to sell only part of the loan portfolio, some items that may be on the table are an NIS 80 million loan to Haifa Chemicals and a similar loan to Etgal Energy, a company owned by Ran Croll.
Barinboim declined comment for this article.
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