Delola Rakeh Controlling Shareholder Buys 10% Stake for $55 Million
Gil Agmon, the controlling shareholder and CEO of the holding company Delek Rakeh, recently acquired approximately 10% of the company's shares for about NIS 200 million (approximately $55 million). This acquisition comes after Delek Rakeh's stock lost 40% of its value since the beginning of the year. Agmon's purchases were made at a price of NIS 20 per share, representing a 38% premium over the market price at the time. Initially, he bought about 7% for NIS 148 million, and subsequently acquired an additional 2.5% for NIS 47 million, bringing his total stake to 59% and his total expenditure to NIS 195 million.
Following these purchases, Delek Rakeh's stock surged by 38% in the past week, valuing the company at NIS 1.9 billion (approximately $520 million). The identity of the major sellers to Agmon was a subject of speculation in the capital market. It has been revealed that the primary sellers were the investment houses Altshuler Shaham, which sold its entire holding of 3.9% (worth about NIS 75 million), and Analyst, which sold its 1.6% stake (worth about NIS 30 million). Together, these two institutions accounted for over half of the total sales.
Other institutional investors, such as Menora Mivtachim Insurance and Mor Investment House, hold significant stakes of 9.5% and 5% respectively. While they have not officially reported selling shares to Agmon, market assessments suggest that Menora Mivtachim may have participated in the sale. Companies holding over 5% are not required to immediately report minor changes in their holdings of less than 2%.
Delek Rakeh, a diversified holding company involved in vehicle import, industry, and infrastructure, faces challenges in analysis due to its varied operations and significant debt. Its businesses include importing Mazda, Ford, and BMW, as well as environmental services through Veridis and investments in real estate and technology. A notable investment in the chip company Hailo, once valued at over $1 billion, was recently sold for tens of millions of dollars after facing difficulties. In the second quarter, Delek Rakeh reported a substantial loss of approximately NIS 122 million, largely due to a NIS 161 million write-down related to Hailo.
The company's traditional automotive import and sales business has seen a decline, with new vehicle sales dropping by 42% in the first half of 2025 compared to the previous year. Mazda sales fell by 68%, while Ford sales decreased by 8.5%. Sales of premium BMW vehicles remained stable during this period.
