FIMI sells Orbit Technologies shares to institutions

Yishai Davidi’s private equity firm FIMI Opportunity Funds, which controls defense company Orbit Technologies (TASE: ORBI), sold 15% of its shares in the company last week to financial institutions for a total of NIS 100 million at a discount on the market price, which fell 9% on the day of the sale.


The main buyer was More Investment House, headed by Yossi Levy, which bought shares for its pension and provident funds and its mutual funds to the tune of NIS 41 million. The investment house’s stake in Orbit thereby rises to 16.5%. The second largest purchaser was Meitav, headed by Ilan Raviv, which bought shares to the tune of NIS 17.7 million, raising its stake in Orbit to 9.7%.

FIMI sold the shares after a 39% jump in Orbit’s share price since the outbreak of the Swords of Iron war in October last year. FIMI will continue to be the controlling shareholder in the company, with a 28.6% stake, currently worth NIS 181 million. Orbit Technologies has a total market cap of NIS 633 million.

The sale to the institutions was at NIS 25 per share, below the market price, which was NIS 27 at the opening of trading.

Large gain for FIMI

FIMI became the controlling shareholder in Orbit in 2017, with a total investment in the company of NIS 54 million. Since then it has sold shares to the tune of NIS 135 million, and recorded a NIS 80 million gain. Including its remaining holding in the company, it has made a gain on paper of almost five times its investment.

Last year, Orbit’s revenue grew 6.8% to $63 million, and it posted EBITDA of $14.8 million. Its net profit, however, rose by only 2.3%, to $9.9 million. After the recent rise in its share price, Orbit is traded at a p/e ratio of 17, which is considered average.

Published by Globes, Israel business news – – on April 15, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

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