Migdal No Longer Major Shareholder in Shufersal After Selling Holdings

Migdal Insurance, controlled by Shlomo Eliyahu, is no longer considered a major shareholder in the retail giant Shufersal, following the sale of its stake. The company previously held 6.2% of Shufersal's shares, valued at approximately NIS 600 million, through its mutual funds and profit-participating policies.

Shufersal, now controlled by brothers Yossi and Shlomi Amir, announced that Migdal's sales have reduced its total holdings to below 5%. Migdal stated that the sales occurred over the past three months in several transactions, at an average price of around NIS 38 per share, totaling approximately NIS 125 million.

This development follows Shufersal's first-half financial reports, which showed a decline in all key metrics. Net profit dropped by 13.8% to NIS 299 million, and sales decreased by 2% to NIS 7.1 billion. Same-store sales fell by 2.7%, contrasting with increases reported by competitors Rami Levy and Yohananof.

Despite a recent 12% drop in Shufersal's stock price over the past month, partly due to the poor financial results, the stock has seen a 133% increase over the last three years. The current stock price is slightly lower than Migdal's average sale price. Shufersal's position in the TA-35 index is uncertain ahead of the mid-month review.