Summit Increases Ashdod Refinery Stake to 16.9% Amid Shapir Hurdles
Zohar Levy's Summit acquired a 4.9% stake in Ashdod Refinery from Paz for 75 million NIS, raising its total holding to 16.9% and challenging Shapir's control ambitions.
Battle for Control of Ashdod Refinery
Against the backdrop of regulatory obstacles facing Shapir group in its bid to gain control of the Ashdod Refinery (BAZA), Zohar Levy and his company Summit have increased their holdings, raising questions about Levy's long-term investment strategy.
On Thursday, Summit acquired most of the shares (4.9%) sold by Paz for approximately 75 million NIS, boosting its total stake in the refinery to 16.9%. BAZA's share price surged by 16% over two days as uncertainty cleared following Shapir Engineering's decision not to exercise its option to buy those shares. Market optimism is also driven by the refinery's plans to construct a server farm and a power plant on its premises.
Regulatory Roadblocks for Shapir
Shapir Engineering, controlled by the four Shapira brothers, currently holds a 10% stake in BAZA, acquired in June 2023 during the spin-off from Paz. While Shapir secured an option to increase its holdings up to 65% by 2028, its ambitions were dampened a month ago by the Concentration Committee.
The committee recommended that the Government Companies Authority withhold a control permit from Shapir due to market concentration concerns, citing the group's 15 billion NIS market value and projected 2025 revenues exceeding 6 billion NIS. Additionally, regulators are demanding that Shapir complete the sale of its natural gas operations, valued at 230 million NIS under a memorandum of understanding.
Summit's Strategic Play
Summit's increase to a 16.9% stake signals strategic ambitions rather than a passive financial investment. This position allows Summit to potentially partner with other shareholders to block Shapir from exercising its control option, which would require a tender offer to raise its stake from 24.9% to 30%.
Sources inform Calcalist that Nofar Energy, led by Ofer Yannay, is also exploring opportunities regarding the refinery, though Nofar's spokesperson denied such intentions. BAZA's market value reached 1.8 billion NIS following a massive trading volume of 200 million NIS on Thursday.
