Bank Mizrahi-Tefahot invests 98.8 million shekels in waste management sector
Bank Mizrahi-Tefahot continues its non-banking investment strategy by injecting 98.8 million shekels into Mafat, a company specializing in waste collection, sorting, and landfill operations.
Bank Mizrahi-Tefahot continues to expand its non-banking investment portfolio. Six months after the initial report regarding the acquisition of the Mafat plant from Lahav El-Ar—owned by Avi Levy and investor Roi Vermus—the bank has announced the signing of an agreement in principle for the investment.
Under the terms of the agreement, Mizrahi Invest, managed by Shimrit Koenig, will invest 98.8 million shekels. This figure reflects a pre-money valuation of 560 million shekels for Mafat and a post-money valuation of 658.8 million shekels. In return, the bank will be allocated 15% of Mafat's share capital. The bank also holds an option to purchase an additional 5%, provided that its total holdings do not exceed 20% of the company's capital, as required by law.
Following the deal, Mafat's capital will increase by 40 million shekels during the third quarter of this year. The option will be exercisable for a period of up to 30 days from the date of the transaction, with an exercise price of 41–45 million shekels.
Mafat is a private company operating in the field of waste collection and disposal, as well as the operation of transfer stations, waste sorting, and landfilling. Lahav El-Ar currently holds 65% of its shares through Lahav Infrastructures.
Bank Mizrahi-Tefahot describes the entry as a significant strategic move intended to support Mafat’s continued development, growth, equity strengthening, and the achievement of its strategic objectives.
One of the conditions of the deal requires Mafat to list on the stock exchange or become a public company within five years. The bank has also been granted the right to sell its shares back to the sellers should Mafat be classified as a significant real corporation under the Concentration Law, or due to other regulatory impediments.
Mizrahi-Tefahot has significantly increased its activity in the field of real investments. In doing so, it joins Bank Leumi, the longest-standing player in this field, and Bank Hapoalim. Discount Bank and First International Bank have remained outside this sector for the time being, each citing its own strategic considerations.
This shift in strategy has been led over the past four years by the bank's CEO, Moshe Larry, who views these investments as a primary growth engine. The bank's investment arm focuses mainly on infrastructure sectors, such as the acquisition of a 20% stake in Rimon Power Energy for 70 million shekels and a 40 million shekel investment in Car Laser, which was completed about a year ago.
