Leumi Partners May Exit Japanika Partnership Amid Violent Attacks on Chain

In recent days, violent attacks targeting branches of the Japanika restaurant chain across Israel have raised concerns for Bank Leumi, which recently invested in the company through its investment arm, Leumi Partners. The attacks included grenade throws and bomb threats, with incidents reported in the Gush Dan area, including attempted arson in Givatayim and an explosive device in Ramat Gan. Police have launched an investigation into the incidents, which are suspected to be linked to organized crime, possibly involving extortion demands or disputes with franchisees, though no evidence has yet been confirmed.

Leumi Partners, led by Victor Wekert, acquired a 20% stake in Japanika for approximately 200 million shekels, valuing the company at around one billion shekels. Sources close to the bank indicated that if the chain is proven to be involved with criminal elements, Leumi Partners may withdraw from the partnership. The violent events have already cast doubt on plans to take Japanika public next year or to achieve a high valuation, with concerns that recurring incidents could harm the chain's performance.

Japanika is owned by businessman Barak Abramov, also known for owning the Beitar Jerusalem football club. Abramov's rise from dishwasher to food empire owner is notable, though some aspects of his background remain unclear. The investment in Japanika fits into a broader trend of institutional and private investors, including Leumi Partners and pension funds, increasing their stakes in the food and dining sector.

Victor Wekert's accelerated investment strategy has seen multiple deals in the food industry, supported by Bank Leumi CEO Hanan Friedman, who recently secured shareholder approval to adjust his compensation to reflect Leumi Partners' fair value rather than the bank's stock performance. This backing suggests confidence in the investment arm's growth despite current challenges. The ongoing police investigation and the quality of due diligence conducted before the Japanika deal will be critical in determining the future of Leumi Partners' involvement.