Matslaui Faces Over $2 Million Payout on Stock Deal

Sami Matslaui is set to pay over 7 million shekels ($2 million) to the investment house Mor as a result of a stock sale agreement. On November 3, 2024, Matslaui sold Mor 2.93 million shares, representing 13% of the company, for approximately 35 million shekels, or 11.96 shekels per share. This sale occurred shortly after Matslaui completed the acquisition of shares from his former partner, Eliyahu Kanpler.

The agreement stipulated that Mor was guaranteed an 8% annual return for two years from the purchase price, including adjustments for future dividends. This guarantee protected Mor against a decline in the stock's value over the two-year period, which concluded on the day of the report. Based on a cumulative annual return, the reference price after two years reached approximately 13.95 shekels per share.

If the stock price at the settlement date is 11.5 shekels, the difference would be about 2.45 shekels per share, totaling approximately 7.2 million shekels. The final amount depends on the agreement's specific terms and dividend adjustments. Matslaui also committed to not selling shares for a year under certain conditions and to maintain a minimum holding of 45% in the company during the settlement period.

In September, Matslaui sold another million shares to an unidentified buyer for 14 million shekels, at a price about 18% higher than the stock's market value. The company stated this transaction was to repay a loan Matslaui took to purchase Kanpler's shares. It was not disclosed if this deal also included additional commitments, such as a guaranteed return.

The Matslaui company's stock has fallen 35% in the past 12 months, underperforming the TA Construction index, which dropped 19.6%. Matslaui currently holds 51.35% of the company's shares, valued on paper at 130 million shekels, with the company's total market capitalization at a quarter of a billion shekels.