Itzik Sela Becomes Party of Interest in Arazim

Eyal Sela 1991 Ltd., controlled by Itzik Sela, has added another substantial stake to its holdings portfolio. On Monday Sela purchased 3,000 more shares in Meir Gurvitz's Arazim Investments, at NIS 3.50 per share, bringing Sela's stake in the company to 490,000 shares, or 5.01%. Sela's holding is worth about NIS 1.5 million, as Arazim is now worth only about NIS 30 million. On the eve of the economic crisis, in mid-2007, Arazim's market cap was more than NIS 1 billion, but problems including the financial distress of the company's main tenants in its properties in Britain (which was hit hard by the real estate crisis) and a series of credit downgrades by Maalot S&P savaged its value.

Data from the Registrar of Companies indicates that Eyal Sela is an earthworks and infrastructure development contractor with revenues of NIS 150 million in 2007. Since the company is privately owned, no other financial information is available.

Sela already owns substantial holdings in several other companies, one of which is Bank of Jerusalem. Eyal Sela has owned 5% since the end of 2000. When Sela bought into the bank it was worth NIS 200 million. It is now worth NIS 290 million.

In addition to that direct holding in Bank of Jerusalem, Sela owns 6.4% of Export Investments, which is privately owned by the Shoval family and which itself owns 82% of Bank of Jerusalem. Since Sela became a substantial shareholder in that company the bank has disbursed some NIS 80 million in dividends, NIS 4 million of which have lined Sela's pockets.

Sela owns 7.1% of N. Feldman & Son, a holding that is worth NIS 1.1 million, or about the same as when he purchased that stake in 2001. Feldman's stock market value is about NIS 15.8 million, as it was then as well.

Sela's fifth substantial stake holding is in the Angel bakery. He owns 5.4% of that enterprise, which is currently worth NIS 9.5 million. Sela became a substantial shareholder in this company at the end of 2001, when it was worth NIS 83 million, less than half of its current value - NIS 177 million. Over the past eight years Angel has disbursed dividends twice, for a total of NIS 10 million. The Registrar of Companies records indicate that Sela also owns a 30% stake in Bioguard Components & Technologies, a privately owned company that develops biometric identity verification systems.