Photography shutterstock, vecteezy
Maimon Direct reports today (Monday) that it has signed an agreement with Menorah Mivathim (mostly through the members’ funds), following the agreement of principles signed in 2022. As part of the agreement, Menorah Mivathim associates enter as 15% partners in the subsidiary of Mimon Direct that deals with providing credit In the field of mortgages, in exchange for a total of about NIS 19.4 million. This amount will constitute 15% of the total amount that has been transferred to the company up to this date. As part of the deal, Menorah Mivathim will provide the company with a credit line of one billion shekels.
As part of the investment agreement, Direct Financing and Menorah Mivathim undertook to gradually inject capital into the subsidiary at the dates to be determined according to the subsidiary’s requirement, in the amount of up to NIS 510 million. The deal implements the business strategy of direct financing, as presented in the latest financial statements it published, according to which the goals are to reach profitability in the subsidiary as early as 2024, maintain a credit margin of 2.5% and reach a market share of 3% in the mortgage sector within 5 years. It will be emphasized that, in accordance with the business model of direct financing, the parties intend to examine cooperation for the purpose of performing checks on the mortgage loan portfolios.
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Eran Wolf, CEO of Direct Financing said: “This is a significant milestone for the company. We see the partnership with Menorah as a strategic move that will greatly strengthen our abilities and our business potential in the field of mortgages. There is no doubt that the core skills we gained through direct financing in the automotive market will lead us to replicate the success in this field as well. Thank you to the team of Direct Financing led by the CFO Oren Shakdi, the CEO of the subsidiary, Direct Financing Real Estate and Mortgages, Eran Golan, and the CFO of the subsidiary, Shimon Ben Artzi who led the transaction and to the Menorah team who worked with us on the transaction “.
Nir Moroz, Deputy CEO and Head of the Investments Department at Menorah Mivathim: “As part of diversifying the partners’ investment portfolio, we see the mortgage sector as a field with the potential to increase value for our partners and the group’s policyholders, which is why we partnered with a partner with extensive experience in the field. I would like to thank Joanna Weissman, director of the credit department and Omer Shifer, director of the investment funds and non-marketable equity department for the thorough and professional work.”
The transaction is subject to the existence of conditional conditions as usual, including the receipt of possession permits and additional regulatory approvals required for the transaction. The lawyers who represented Maimon Direct are Omer Tikolsky, Yotam Dauber and Eden Salomon Liabok from the Piron office. The lawyers who represented Menorah Mivathim are Yoav Nahir and Yehudit Glaor from the Mitar office.
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