Ophir Karni and Institutional Investors Acquire 75% of Dan Transportation for 2.1 Billion Shekels
The Israeli Competition Authority approved the acquisition of Dan Transportation, which was finalized today. Ophir Karni, CEO of Dan, led the purchase of 48.8% of Dan's shares from the LBH investment fund of Value Base and Ofer Linchevski. There is an option to acquire an additional 26% through a partnership including institutional investors Mizrahi Tefahot Invest, Leumi Partners, and Clal Insurance. These three institutional bodies will serve as financial partners, while management rights remain solely with Karni, who will continue as CEO.
Dan Transportation operates public bus lines, shuttle services via United Tours, bus imports through Pendan, and participates in PPP tenders. It manages the Green Line light rail in Tel Aviv and the Blue Line in Jerusalem. The Competition Authority, led by Michal Cohen, initially expressed concerns about potential conflicts due to Clal and Leumi Partners holding minority stakes in competing companies. After thorough review, these concerns were resolved.
In a second phase, the investors plan to acquire approximately 26.6% more shares, with advanced negotiations underway. Upon completion, the investor group will hold 75% of Dan Transportation, while Dan employees will retain 25%. The total deal is valued at about 2.1 billion shekels, with an effective company valuation of 2.8 billion shekels.
Dan is Israel's second-largest public transportation company, holding around 15% market share. It operates a fleet of about 3,000 buses on over 200 routes nationwide, serving nearly 200 million passengers annually. Most operations are centered in the Gush Dan metropolitan area, with additional activity in southern Israel. The group’s annual revenues are estimated at 2.5 billion shekels, with an EBITDA of approximately 500 million shekels.
The investor partnership was specially formed for this deal: Clal Insurance holds 49% (36.75% of Dan shares), Leumi Partners 20% (15% of Dan shares), Mizrahi Tefahot Invest 20% (15% of Dan shares), and Karni with private partners 11% (8.25% of Dan shares). Beyond public transport, Dan is expanding shuttle services, bus import/export, maintenance, and technology solutions. It operates the Ayalon rapid lanes project with 170 electric intercity buses and advanced toll systems, and holds concessions for Jerusalem’s Blue Line and Tel Aviv’s Green Line light rails.
Internationally, Dan owns Portuguese transport company TST, operating 350 buses around Lisbon, recently adding over 50 electric buses. Dan also completed shuttle operations between Hamburg and Berlin during railway upgrades. The company invests in transport technology and is developing an electric vehicle battery recycling plant in Nir Am near Gaza.
Dan’s CFO Il Merdler and Business Development VP Roi Shaul supported the transaction and will continue working with Karni to drive growth and value for new investors. Legal advisors included attorneys Uri Heller from Gornitzky & Co. and Avraham Wol from Fischer Behar.
