Pozis Family Increases Stake in Novolog Amid Control Struggle

The Pozis family, which owns 26% of the logistics and medical services company Novolog (88.9, +7.24%), announced on Wednesday the acquisition of approximately 18.2% of the company's shares from Phoenix and Arkin for a total of approximately 91 million shekels, at a price of 98 agorot per share—a 19% premium over the market price this morning.

The acquisition comes against the backdrop of an offer by Eli Dahan, the controlling shareholder of the Movement company, to invest 100 million shekels in exchange for 21% of Novolog, which would have diluted the Pozis family's stake. The Movement offer was priced at 72 agorot per share, 5% above the market price at the time, but lower than the valuation reached during the control struggle.

The Pozis family stated that the transaction reflects long-term confidence in the company's potential and is being carried out without diluting existing shareholders. They intend to lead a business plan to increase profitability and strengthen corporate governance.

Novolog provides various health services, including logistics (distribution of medicines and medical equipment), home care, and digital health. Founded in 1966 by Eliezer Pozis, the company grew under the management of his son Ehud (Udi) Pozis, who took it public in 2017.

Following a series of investment write-offs, the company's market value plummeted from a peak of 1.8 billion shekels to its current 415 million shekels.

"A move coordinated with the board of directors"

Market sources indicate that Pozis (73) intended to sell his stake earlier this year after retiring as chairman in late 2024. After the sale failed, he passed the reins to his son Oded, who was appointed as a director in May. This caused tension on the board; Oded Pozis claimed the board withheld information, a charge denied by board members appointed with his father's blessing.

Following Dahan's investment offer, Oded Pozis claimed in a letter to the board that Dahan’s move was coordinated with the board to entrench its status and prevent its replacement. Dahan and the board deny any such connection.

Pozis sought to convene a shareholders' meeting to replace the board, but the current deal emerged during his efforts to recruit shareholder support. Having entrenched his control, Pozis is now likely in a position to replace the board if he so chooses.

Crises and challenges

For institutional investors such as Clal, Migdal, and Harel, the question remains whether the Pozis family's firm control, led by Oded Pozis, can pull Novolog out of its distress. The company recorded a 39 million shekel loss in 2023 due to write-offs and suffered operational disruptions last year following a failed ERP system (SAP) migration.

In 2025, Novolog saw revenues of 1.8 billion shekels—a 10% decrease from the previous year—with profits dropping to 4.4 million shekels.

"Completely business focus"

Oded Pozis, a director at Novolog, stated:

"We chose to invest significant capital from our own funds because we trust that the company can and should return to being one of the leading companies in Israel. Our focus is now completely business-oriented, including strengthening the logistics system, improving performance, and building a strong management team to return the company to a path of growth."

Eli Dahan stated:

"Our offer was valid until today and will not be extended. I am happy we identified the opportunity in Novolog, and since stock transactions are currently being carried out at a price 50% higher, we wish success to all shareholders and will continue to pursue the Movement group's vision for preventive medicine."