Menora Mivtachim Reacquires 5% Stake in Pension and Provident Fund at Nearly Double Price

Menora Mivtachim, a leading Israeli insurance and financial services company, is repurchasing a 5% stake in its pension and provident fund operations from Allied Group, controlled by Yitzhak Suari. The transaction values Menora Mivtachim Pension and Provident Fund at approximately 5 billion shekels, nearly double the valuation when Allied initially invested about five years ago.

The deal involves Menora Mivtachim, managed by Michael Kalman, buying back half of the shares held by Allied for 249 million shekels. Allied will retain a 5% stake with a similar valuation, while Menora will hold the remaining 95%. Allied originally acquired 5% of the pension and provident fund business in 2021 for around 129 million shekels, reflecting a company valuation of about 2.6 billion shekels, and later exercised an option to purchase an additional 5% for 150 million shekels. This means Allied nearly doubled its investment within five years.

As of the end of the latest quarter, Menora Mivtachim manages pension assets worth approximately 312 billion shekels and provident fund assets totaling about 55 billion shekels, making it the largest pension operator in Israel. Il Eliya, recently appointed CEO after a long tenure at Hachshara Insurance, leads the company. In the first quarter of 2026, the pension and provident fund operations posted profits of about 93 million shekels, a 24% increase year-over-year, with provident fund profits growing 71% to 24 million shekels, driven mainly by higher management fees.

Allied Group, managed by Yitzhak Suari, is one of Israel's largest holding companies with diversified investments including Champion Motors (importer of Volkswagen, Audi, SEAT, and Skoda), Shlomo Motors (50% stake in BYD importer), real estate via Allied Real Estate, logistics holdings in Maman and UPS Israel, and infrastructure and renewable energy projects such as the Carmel Tunnels and desalination plants.

Menora Mivtachim stated the repurchase reflects strong confidence in the pension and provident fund business and its growth potential.