Altshuler Shaham Founders Explore Selling Control Stake for $270 Million

The founders of Altshuler Shaham, a prominent Israeli pension and provident fund manager, are reportedly considering a dramatic exit by selling their controlling stake in the publicly traded company. Gilad Altshuler and Kalman Shaham, the firm's founders, are seriously exploring the possibility of selling their core holding in Altshuler Shaham Finances.

This potential move, if realized, could significantly reshape the local financial industry. The investment house, currently led by Chairman Ran Shaham, manages approximately NIS 112 billion (about $30 billion) in assets and has a market capitalization of around NIS 1.4 billion ($380 million). The consideration follows active inquiries from various business entities to the company's leadership, according to a Wednesday report in "Calcalist."

The founders, through their private parent company, hold a 55.4% controlling interest. Yair Levinstein, the CEO of the provident fund arm, also holds a substantial 14.8% stake. Industry estimates suggest that a sale of the controlling stake could be valued at a significant premium, potentially reaching NIS 1 billion (approximately $270 million).

Acquiring a new controlling owner could unlock significant new business avenues for the public company. Currently, Altshuler Shaham is restricted from engaging in attractive areas such as mutual fund management, hedge fund operations, or stock exchange membership services due to concerns about conflicts of interest with its private entity. A buyer free from these limitations could leverage Altshuler Shaham's powerful platform for rapid expansion into new sectors and generate substantial growth engines.

Following the report, Altshuler Shaham's stock price surged by 10% at the opening of trading.