Huge dividend in danger: Partner bondholders oppose unusual distribution attempt
Partner bondholders, led by More Investment House and Kesem Mutual Funds, have opposed the company's request to approve an unusual 500 million NIS dividend distribution. Meanwhile, More led opposition to a request by Nofar Energy, resulting in the early redemption of two bond series.
Two weeks after the telecommunications company applied to the court to approve an unusual dividend distribution of about 500 million NIS, the company's bondholders, led by More Investment House, are opposing the move.
In a meeting held on Wednesday, Partner bondholders (series Zayin and Het) voted against the company's request not to object to the distribution. This followed a 55% opposition rate led by the pension and savings divisions of More Investment House, alongside mutual fund companies Kesem and Harel. Consequently, the trustee is expected to notify the court that the holders oppose the move, which may tip the scales.
The opposition comes two and a half weeks after the company, led by CEO Avi Gabbay and Chairman Shlomo Rodav, applied to the court to approve the 500 million NIS distribution—not from profit balances (which amount to about 74 million NIS), but financed by raising 750 million NIS in new debt, which is expected to increase the company's debt ratio.
Currently, Partner has a net financial debt of 128 million NIS, and the company expects that following the move, its net financial debt will jump to 783 million NIS. To approve the distribution, the court must be convinced that the move will not harm the company's financial stability. In any case, the holders' decision is not expected to facilitate the company's plan.
Market analysts estimate the move was intended to reduce the company's capital and return money to investors, primarily the controlling shareholder, the Ampisa group (consisting of companies owned by Shlomo Rodav, Roni Gat, Avi Gabbay, Mori Arkin, and The Phoenix), which holds about 21%.
Partner returned to paying dividends in 2025 for the first time since 2012, when distributions were halted amid a severe price war. Since then, two dividend distributions have been made, totaling 168 million NIS for the Ampisa group.
Following More's opposition: Nofar redeems part of its bonds
Parallel to the situation at Partner, More Investment House also led opposition to Nofar Energy's attempts to approve its interpretation of how it presents its liabilities. This led the renewable energy company, controlled by Ofer Yannay, to carry out an early redemption of two bond series totaling about 400 million NIS.
Last week, the company announced it would convene a meeting of holders of its five bond series (2.2 billion NIS in debt) to approve its interpretation of "net financial debt," which contradicts the Securities Authority's position. Nofar believes its trust deed allows it to neutralize debt provided to projects as owner financing, as well as senior debt up to construction cost ceilings.
While holders of Nofar's two large series (Gimel and Dalet) approved the request, holders of two smaller series (Aleph and Hey) rejected it. This prompted the board of directors to approve a voluntary early redemption of those series.
More Investment House has a history of disputes with Nofar. Late last year, it led opposition to the transfer of control of the energy company Alumey to Nofar and demanded immediate repayment of Alumey's bonds.
In a statement, Nofar Energy said: "The company acted proactively to remove uncertainty and strengthen bondholder confidence. We thank those who supported the proposal. The company fully meets all financial obligations, enjoys high financial strength, and will continue to act in accordance with the law and trust deeds while creating value for shareholders and bondholders."
