Altshuler Shaham Owners Explore Selling Control Amid Stock Surge

The controlling shareholders of the Israeli investment house Altshuler Shaham, Gilad Altshuler and Kalman Shaham, are reportedly considering selling their stake in the company. This comes after a significant outflow of funds from the firm and a substantial drop in its stock price over the past two years. Despite the company's official refusal to comment, the news has propelled its stock up by 10% in trading, valuing the company at 1.5 billion shekels.

A source familiar with the matter indicated that discussions are ongoing, stating, "There are talks in both directions." Altshuler and the Shaham family collectively own 55% of the publicly traded entity, Altshuler Shaham Finances, worth approximately 855 million shekels. CEO Yair Levinstein holds an additional 15% stake, valued at 230 million shekels.

Altshuler Shaham Finances primarily manages long-term savings, overseeing 109 billion shekels in provident funds and 37 billion shekels in pension funds, which constitute 92% of the company's revenue. The firm also has smaller, newer divisions focused on small business credit, construction project support, and alternative investments, particularly in real estate. Other activities, including mutual funds, portfolio management, brokerage, crypto, and independent trading accounts, are held within the owners' private company.

Previously, the owners attempted to integrate the private operations into the public company about a year ago, but the plan did not materialize. During its peak in 2021, Altshuler Shaham's stock traded at a valuation of 4.5 billion shekels. However, weaker investment returns, despite recent positive performance and an expected strong August return, led to a collapse in managed assets. The provident fund division alone saw assets shrink from a high of 215 billion shekels to the current 109 billion shekels, with 142 billion shekels withdrawn. Consequently, the company's stock has plummeted by over 60% from its peak.