Selling an asset and then buying it back at double the price: Menora's unusual move

The insurance and finance company Menora Mivtachim is buying back 5% of its pension and provident fund operations from the Allied Group, owned by Yitzhak Suary. The deal values Menora's subsidiary, Menora Mivtachim Pension and Provident, at approximately 5 billion shekels, almost double the valuation at which Allied entered the company about five years ago.

As part of the move, Menora, managed by Michael Kalman, will buy back half of the pension and provident fund shares held by Allied for 249 million shekels. After the sale, Allied will remain with a stake of about 5% in the company of similar value, while Menora will hold the remaining shares (95%) of the operations.

For Allied, this represents significant value creation after it unexpectedly acquired 5% of Menora's pension and provident fund operations in 2021 for about 129 million shekels, reflecting a valuation of nearly 2.6 billion shekels for the company. A year later, Allied exercised an option to purchase an additional 5% for 150 million shekels. In other words, within five years, the veteran holding group managed to almost double its investment.

As of the end of the quarter, the company's pension operations, the largest in Israel, manage assets totaling approximately 312 billion shekels, while the provident fund operations manage assets totaling approximately 55 billion shekels. The operations are led by Eyal Elia, who was recently appointed CEO of the company after many years at the insurance company Hachshara.

In the first quarter of 2026, the operations recorded a profit of approximately 93 million shekels, a jump of about 24% compared to the same period last year. The profit from the provident fund operations grew at a higher rate of about 71% during the same period, reaching approximately 24 million shekels. This is mainly due to the increase in management fees charged by the company.

Allied's assets

Allied, managed in trust by Yitzhak Suary, is one of the largest holding companies in Israel. In addition to its stake in Menora shares, Allied owns the car importer Champion Motors, the importer of Volkswagen, Audi, Seat, and Skoda vehicles, as well as Shlomo Motors, the importer of BYD vehicles (in which it holds 50%). Furthermore, the company has extensive real estate activity through its subsidiary Allied Real Estate, and logistics activity including holdings in the Maman company and the shipping company UPS Israel. It also has infrastructure and renewable energy activities (Carmel Tunnels, the desalination plant in Hadera, and Negev Ecology).

"We carried out the purchase out of great confidence in the pension and provident fund operations, and in the growth potential and value inherent in them," Menora Mivtachim stated.