Shikun & Binui Controlling Shareholder Sells $120 Million Stake, Vows No Further Sales

Nati Saidoff, the controlling shareholder of Shikun & Binui, has sold 4% of the company's shares for approximately 450 million shekels (about $120 million USD). Sources close to Saidoff stated that he has no intention of selling additional shares in the foreseeable future. Following the sale, Saidoff's stake in the company is now 30.78%.

The market reaction to the sale was muted, with the company's stock rising 2.6% on Friday, recovering some of its previous losses. Shikun & Binui's market capitalization stands at 11.64 billion shekels, with its stock trading at 11.97 shekels per share. Year-to-date, the stock has seen an 8.5% increase.

While large share sales by controlling shareholders can sometimes signal a lack of confidence in a company's future, investors appear to have interpreted Saidoff's move as a partial liquidity event, maintaining a strong core holding. The company itself affirmed Saidoff's continued commitment to its business plans and future value enhancement.

This development comes as Shikun & Binui, managed by Amit Birman, finalized an agreement with Generation Capital for the sale of Shikun & Binui Energy for 4.45 billion shekels, with an additional 150 million shekels due to the time elapsed since the initial memorandum of understanding. This transaction awaits regulatory approvals.

Financially, the company reported second-quarter revenues of approximately 2.3 billion shekels, down from 2.4 billion shekels in the same period last year. First-half revenues were around 4.4 billion shekels, compared to 4.6 billion shekels last year, attributed to a decrease in apartment sales in Europe and a weaker dollar. Gross profit also saw a significant decline, with the second quarter at 150 million shekels versus 459 million shekels last year, and the first half at 338 million shekels compared to 791 million shekels in the prior year.