Amos Luzon Buys Millions in Company Stock Amid Price Drop

Amos Luzon has significantly increased his stake in the Luzon Group over the past two weeks, investing approximately 440,000 shekels in open market stock purchases. This follows a series of acquisitions during the preceding week across three of the group's public companies: Luzon Group, Luzon-Ronson, and Luzon Credit.

Luzon recently acquired an additional 60,000 Luzon Group shares at an average price of 4.75 shekels per share, totaling about 285,000 shekels. This transaction raised his direct ownership in the company to 57.41%. He has since made eight more purchases, amounting to hundreds of thousands of shekels, bringing his total ownership to 57.61%.

His acquisition pattern typically involves buying shares in blocks of 200,000 to 300,000 shekels. Notably, he purchased 2 million shekels worth of shares about ten days ago. The stock of Luzon-Ronson has fallen 25% in the last three months, a period during which Luzon has continued to buy shares, including a recent 200,000 shekel purchase at a lower price of approximately 4.5 shekels per share.

Despite the dip in Luzon-Ronson, the Luzon Group stock has risen 2.3% since the beginning of the year. The holding company recently acquired an additional 5,000 shares of its Polish real estate development subsidiary, Luzon Ronson, for about 155,000 shekels, increasing the group's stake to 71.84%.

Institutional investors, including Mor Investment House (around 12%) and Menora Mivtachim (around 6%), also hold stakes in Luzon Group. The group also has a roughly 28% stake in Luzon Credit, formerly P2P platform Tarya, which is involved in joint mortgage activities with Navie and is valued at approximately 220 million shekels.

Shareholders will convene next month to vote on a proposed three-year extension of Luzon's contract, which includes a significant increase in his monthly management fees. The proposal suggests raising his monthly fees from 260,000 shekels to 360,000 shekels (employer cost plus VAT), an increase of about 38%. This would bring his annual fixed management cost to approximately 4.32 million shekels.