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Wed. May 15th, 2024

Migdal CEO Ran Oz and Harel CEO Michel Siboni.

Amid the growing trend in Israel for publicly held companies to not have a single controlling shareholder, institutional investors – insurance and pension fund managers – are flexing their muscles as they essentially fill those positions. Israel is still not the United States, where most companies lack a single controlling shareholder, but the trend is growing.

Leading companies such as three large banks – Hapoalim, Leumi and Discount – are now among those that don’t have a single controlling shareholder. There’s also another 10 companies on the Tel Aviv-125 index that fit this description, plus an additional 30 companies on the Tel Aviv Stock Exchange that didn’t make it into that index.

The resulting vacuum is being filled by institutional investors such as Migdal, led by CEO Ran Oz, and Harel, led by CEO Michel Siboni. The root of their power lies in the money under their control – some 1.6 trillion shekels, most of the public’s savings – and this figure is constantly growing. Migdal alone controls 275 billion shekels and Harel 260 billion.

Institutional investors are also benefiting from the declining concentration of Israel’s economy and the decline of the country’s heavyweights such as Noch Dankner, Lev Leviev, Eliza Fishman and Shaul Elovich. This gives institutional investors peace of mind and greater freedom of decision-making. With no competition from tycoons or controlling shareholders, institutional investors gain more power and authority. But some investors have particularly strong big shareholders, such as Harrell’s Yair Hamburger and Migdal’s Shlomo Eliahu.

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By BUKAELLY

Bukaelly is an experienced author on various topics with a passion of writing stories of famous personalities, health issues, sports, journalists, news and trending topics. Enjoy reading!!

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