“The demand for investment is mainly fueled by the housing market, this centralization can create terrible social disparities if it continues like this, so the state needs to make the capital market attractive so that it drains some of the demand which will lead to broad economic growth together. There are a variety of investment tools, from investment provident funds to mutual funds and portfolio management, “said Nimrod Sapir, CEO of the Association of Investment Houses at a forum conference. Dun 100, By Dun & Bradstris. He added that “the state must regulate investment in crypto in Israel, in a way that is convenient and accessible to everyone and will be an additional response to demand. We must also think on the financial side of how to direct demand from the housing market to other investment worlds.”.
Adv. Eitan Shmueli, partner and head of the capital market department at Lipa Meir’s firm, attacked the company’s IPOEPM , Suspended meanwhile by the Securities Authority. He said: “It is not possible to market a security such as a car or a Bamba. I think that the Securities Authority should pay attention to this issue and outline a policy on what is the right way for the public to market the content of company prospectuses. ”
Will we see more struggles for control of public companies in Israel? Adv. Ilan Gerzi, partner and head of the capital market department at Pearl Cohen’s firm, is actually in favor. , Are for the benefit of the general public. In the struggles for control, there are quite a few young entrepreneurs who receive the funding from such and other institutional bodies, enable the return on the stock, and bring the companies to a better position. Therefore we are likely to see in the current year a lot of control acquisition transactions and control struggles in companies without a core of control, whether it is from specific assets that these companies have or in the case of insurance companies that enjoy considerable financial capabilities“.
Gerzi added that this is a global phenomenon: “This phenomenon occurs both in Israel and in the United States and we are expected to see it in many high-tech companies that have been cut in value, and because of the dispersion of shares, such companies can be taken over.“.
Regarding the problem of management in companies without a controlling interest, Shmueli added: “We are now in an intermediate situation where the Companies Law does not provide a proper solution to the problems involved in companies without a controlling interest. This situation may have been exploited by directors. The merger with Delek Israel, and how Yaki and Damani found themselves outside Shufersal, when it was clear that the moves he proposed were inconsistent with the interests of shareholders as Phoenix saw it. Allow institutional bodies to be more involved in overseeing public companies over which there are no controlling shareholders.Cooperation between institutional bodies will allow them to share the costs of oversight, while saving resources and taking advantage of the benefits that institutional investors have.“.
Adv. Danny Markowitz, partner and head of the capital market department at Amit Polak, Matalon, added that “in recent years, the number of public companies without a core of control has been growing. This is a reality that requires regulatory changes such as softening the power in the hands of senior executives, increasing the independence of the board of directors and creating the involvement of shareholders in making certain decisions in the company – especially unusual transactions with senior executives. On the other hand, the need to appoint external directors should be eliminated and the appointment of independent directors should be sufficient, and the abolition of the audit and remuneration committees should also be considered.“.
According to the data, about NIS 26 billion was raised in the stock market in 2021, almost half by new companies only. In the first quarter of 2022 alone, about NIS 7.5 billion was raised in the stock market, a rate of about 30% of the total raised in 2021. By the old companies. According to Efrat Segev, VP of Data and Analysis at Dun & Bradstris, “Along with the constant growth of the capital market in Israel, we anticipate curbing inflation on the one hand in the face of the consequences of interest rate hikes, renewed security tensions In the supply and the global supply chain, which was exacerbated by Russia’s invasion of Ukraine and in the high-tech industry – strengthening the growth trend in the face of expected value adjustments, a trend that has already begun“.
And what about the possibility that Israeli companies will acquire foreign companies and not necessarily be acquired by them? Adv. Nir Dash, co-director of the Companies and Securities Department at the Herzog firm, believes that “The Israeli companies have a large cash register, which can allow them to switch to the buyer’s side. At the same time, on the other side are funds in the United States with a lot of money, which in recent years have not been used enough, they can use the money to take over companies without a core of control. Of American entities that will use the size advantage “.
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