Israeli Real Estate Group Best Reveals Unauthorized Withdrawal of Nearly 1 Million Shekels by Owners

Best Group, an Israeli real estate development and construction company recently listed on the Tel Aviv Stock Exchange, announced an internal investigation following suspicions of financial irregularities in its subsidiary. The probe was initiated after VAT authorities alerted the company about a subcontractor. It was discovered that between October 2024 and June 2026, funds amounting to approximately 0.7 to 1 million shekels were taken without authorization by controlling owners and a relative, allegedly by mistake, through the subcontractor. These funds were subsequently returned with interest calculated at the highest rate the company pays to financiers since the start of the period in question.

Additionally, the investigation revealed that around 2.2 million shekels were transferred from a non-material project of the subsidiary via the subcontractor to third parties unrelated to the controlling owners or company activities, without proper budgeting or adherence to company procedures. Due to these findings and the absence of external directors or an audit committee, the company’s chairman authorized internal auditor Shlomi Drori, supported by lawyers from Agmon & Tolchinsky, to conduct a comprehensive review of the irregularities.

Best Group pledged to implement the independent auditor’s recommendations to enhance controls and procedures and to take further actions as needed to prevent recurrence. The investigation is ongoing, and the company will provide updates as necessary. Best Group completed its initial public offering in June 2026, valuing the company at about 3 billion shekels post-money. The company, founded in 1972 and owned 80% by the Tanus family and 20% by Phoenix Insurance, raised approximately 400 million shekels by selling 13.75% of its shares, with demand reaching nearly 1 billion shekels. Best operates in real estate development, construction, and income-generating properties in Israel, Canada, and the UK, with a backlog of 5.3 billion shekels and 412 employees as of the end of last year.