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Teddy Sagi Sells Israeli B Communications Shares For $16 Million Profit Earns 46% Return In Few Months

The return on Sagi’s investment in the Bezeq parent company was nearly 50%.
  –
Teddy Sagi

Less than nine months after investing in B Communications Ltd. (Nasdaq:BCOM; TASE: BCOM), Teddy Sagi has sold his remaining holding in the company at an impressive profit. B Communications is the parent company of Bezeq Israeli Telecommunication Co. Ltd.(TASE: BEZQ). In June, 2013, Sagi bought 12% of the company at a share price of NIS 35, for a total investment of NIS 125 million. The purchase was made at a 20% premium on the market price at the time, and increased the liquidity of the parent company, Shaul Elovitch’s Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD), which sold the shares to Sagi.

In February, Sagi sold more than half of his shares in the company, at a share price of NIS 48, and the remaining shares last week, at a share price of NIS 49.5. During the time that he held the shares, Sagi enjoyed dividends totaling NIS 12 million (NIS 3.4 per share). Therefore, Sagi’s profit from his investment in the company totals NIS 58 million, a return of 46% on his investment.

Last week, Sagi’s shares were sold by Meitav Brokerage and Excellence Underwriting. In contrast to the sale of the first portion of the shares in February, where the shares were sold to two financial institutions,  Meitav DS Holdings Ltd. (TASE:MTDS) and The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), this time, the shares were distributed among many different institutions, none of which, apparently, has reached the threshold of mandatory reporting for parties at interest. Sagi is expected to announce the sale of his holding in the coming days. B Communications holds 30.9% of Bezeq, at a current value of NIS 5 billion ($1.42 billion). Internet Gold is the controlling shareholder in the company, with a 68% holding.

Published by Globes [online], Israel business news – www.globes-online.com 

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