Delek Motors CEO Buys 5% of His Firm's Shares From Hapoalim

Gil Agmon, the CEO of Delek Motors, has purchased 5 percent of his company's shares from Bank Hapoalim for NIS 52 million, thereby increasing his stake in the firm to 15 percent.

Delek Motors imports Mazda, Ford and Lincoln cars.

The purchase was concluded off-market at a price of NIS 13 per share, which is 14 percent higher than its price at the start of trading on the Tel Aviv Stock Exchange yesterday. Agmon plans to take out a bank loan to finance the purchase.

The sale will net Hapoalim a capital gain of NIS 11 million. It has also received NIS 14 million in dividends on the stock in the three years since it purchased it at a price of NIS 10.15 per share. During this time, the company has paid dividends of NIS 3.6 per share.

Over the last few years, Delek Motors, which is controlled by businessman Yitzhak Tshuva, has been the Israeli market leader in car sales. Last year, it sold 25,000 new cars for a total of NIS 3 billion and finished the first nine months of 2002 with a net profit of NIS 90.5 million. Its market value is currently NIS 932 million and its equity totals NIS 432 million.

Bank Hapoalim decided to sell the shares both because Agmon's offer provided it with the chance of a nice profit and because as a matter of policy, the bank has been trying to reduce its nonfinancial investments in fields unrelated to its core financial activities.