Pozis Family Strengthens Control of Novolog Amid Eli Dahan's Investment Bid

The Pozis family, holding 26% of logistics and healthcare services company Novolog, announced on Wednesday the purchase of approximately 18.2% of Novolog shares from Phoenix and Markin for about 91 million shekels at 0.98 shekels per share, a 19% premium over the morning market price. This move comes in response to Eli Dahan, controlling shareholder of Movement, offering to invest 100 million shekels for a 21% stake in Novolog, which would dilute the Pozis family's holdings to a similar level. Dahan's offer was priced at 0.72 shekels per share, 5% above the pre-offer market price but below the current trading price amid the control struggle.

The Pozis family stated the acquisition reflects long-term confidence in Novolog's potential and will not dilute existing shareholders. They plan to implement a business strategy to increase profitability and strengthen management and corporate governance. Novolog, founded in 1966 by Eliezer Pozis and expanded under his son Ehud (Udi) Pozis, operates in pharmaceutical logistics, home care, and digital health. The company grew rapidly during the COVID-19 pandemic but has since seen its market value fall from a peak of 1.8 billion shekels to about 415 million shekels due to investment write-downs.

Market sources indicated that Ehud Pozis intended to sell his stake earlier this year after stepping down as chairman in late 2024, but the sale did not materialize. Control was transferred to his son Oded Pozis, who joined the board in May 2023, causing tensions within the board. Oded accused the board of coordinating with Dahan's offer to entrench itself and block board changes, a claim denied by board members and Dahan's camp. Pozis sought to convene a shareholders meeting to replace the board but appears to have reached the current deal instead. This strengthened control may allow Pozis to replace the board if desired.

Novolog's shares have dropped 36% over the past year. Institutional investors like Clal, Migdal, and Harel remain shareholders. The company, usually profitable, reported a 39 million shekel loss in 2023 due to impairment charges and suffered operational disruptions last year from a failed ERP system replacement, leading to customer losses. In 2025, revenues declined 10% to 1.8 billion shekels and net profit fell to 4.4 million shekels.

The Pozis family emphasized a "complete business focus," aiming to strengthen Novolog's logistics operations, improve efficiency and profitability, and appoint experienced professionals to the board. Oded Pozis said the family invested significant capital because they believe Novolog can return to being a leading Israeli company. Eli Dahan stated his offer remains valid but will not be extended or changed, expressing satisfaction at identifying the opportunity and wishing Novolog's shareholders success while continuing to pursue other investments aligned with Movement's vision for healthy living and preventive medicine.