Psagot Investment House News
2 articles
growth-positive
How Israel’s largest investment house shifted focus to waste management
Psagot, once Israels leading investment firm, is set to rebrand as R.G.A. after acquiring the waste management company R.G.A. Services & Cleaning for NIS 85 million ($22 million). This acquisition marks Psagots shift from finance to the environmental sector, focusing on waste and sanitation services. The deal includes a financing arm for waste management vehicles and is contingent on the completion of due diligence. The acquisition is part of a broader strategy by incoming owner Yaniv Bender to capitalize on the growing environmental sector. Bender will increase his stake in Psagot to 73% by purchasing shares from Rani Zim, who faced financial challenges during his tenure. The acquisition is expected to bring consistent growth and positive cash flow, leveraging R.G.A.s established reputation in sanitation services.
Acquisition
growth-negative
Psagot worth 80% less since Rani Zim bought it
In late August 2021, Rani Zim acquired Psagot Investment House for NIS 405 million from Altshuler Shaham. Since then, Group Psagot for Finance and Investments has faced significant challenges, including a 75% decline in its share price and a market cap of just NIS 97 million. The company is now seeking to raise NIS 220 million in debt to cover existing obligations. Psagots business has grown, managing NIS 43 billion, but profitability remains elusive. Recent sales include a portion of its mutual funds and portfolio management business to Kessem for NIS 200 million. Rani Zim has stepped down as chairperson, replaced by Daniel Leventhal. The article highlights the difficulties faced by Psagot due to rising interest rates, judicial overhauls, and geopolitical tensions.
AcquisitionInvestmentManagement ChangesCustomers
