Novolog Faces Control Battle as Movement Offers 100 Million Shekels for Stake

Novolog, a leading Israeli logistics and management company in the medical market, announced on Wednesday that Movement, led by Eli Dahan, intends to invest 100 million shekels for approximately 21% of Novolog at a 5% premium over market price. Shortly after, Mevat App, the family company of Novolog founder Ohad Pozis which currently holds about 26.7% of Novolog, called for a general meeting aiming to replace the board of directors, likely to block the proposed deal.

Novolog's stock traded on Thursday at a valuation of 360 million shekels, down 42% over the past year and 77% from its 2021 peak. Following the announcement, the share price rose by 15%. Novolog is a major player in pharmaceutical distribution in Israel and has expanded into home hospitalization and digital medical solutions, including clinic management. Movement operates in the quality of life sector, managing gyms, fitness apps linked to health funds, gym equipment, and longevity clinics, creating potential synergy between the companies.

Eli Dahan, who previously held up to 8% of Novolog shares after selling Infomed to the company, leads Movement. In January, Movement raised 120 million shekels from Leumi Partners, equipping it with capital to pursue the acquisition. Dahan’s binding offer requires no due diligence and is valid until August 5, 2026, limiting the Novolog board’s ability to evaluate alternatives.

The current Novolog board, appointed only months ago, includes a single representative from the Pozis family. Since the offer is for less than 25%, it does not require shareholder approval, allowing the board to decide. Mevat App’s move to replace the board likely aims to prevent approval and return the decision to shareholders. Besides the Pozis family, major shareholders include Migdal (14%), Phoenix (12%), Harel (11%), Mori Arkin (8%), and Clal (6.4%).