Jeremy Blanke Sells Bazan Shares Worth $25 Million

Jeremy Blanke, through his Community fund, has begun to cash in on his investment in the Bazan Group, an Israeli oil refining company. In recent weeks, the fund sold approximately 1.6% of its Bazan shares for about 100 million shekels (approximately $25 million USD). Following this sale, the fund's stake in Bazan has decreased to around 4.9%, valued at approximately 350 million shekels ($87.5 million USD) at current market prices.

This reduction in ownership below the 5% threshold means Community is no longer considered a "controlling shareholder" but a regular shareholder. Consequently, any future sales of its remaining shares will not require routine disclosure to the stock exchange, making it harder for the market to track the fund's divestment pace.

The sale comes after a significant surge in Bazan's stock price, which has risen about 160% since the beginning of the year and nearly tripled in the past 12 months. The company is currently valued at approximately 7.5 billion shekels ($1.875 billion USD).

Bazan recently reported strong financial results, including a net profit of about $260 million USD in the second quarter, a turnaround from a loss in the same period last year. Its neutral refining margin stood at approximately $18 per barrel, a level considered very high. The company also announced a dividend payout of $120 million USD.

These high refining margins, driven by disruptions in refining capacity in Russia and elsewhere coupled with strong demand for fuels, have significantly boosted Bazan's profitability. The Community fund had previously increased its stake when Bazan's stock was trading at lower prices, resulting in substantial profits. Even after this partial sale, the fund retains a significant holding, positioning it to benefit from further stock appreciation if refining conditions remain favorable.

Blanke also has extensive knowledge of Bazan's international operations, including the fund's involvement in Bazan's $100 million acquisition of 52% of the U.S. oil company Cantium. This current sale can be seen as a move to reduce exposure after a period of strong performance, as high refining margins, while currently beneficial, are subject to fluctuations in energy prices and refining product supply. Meanwhile, Bazan continues to address the issue of evacuating its Haifa complex, seeking over 5 billion shekels ($1.25 billion USD) from the state.