Mizrahi-Tefahot Bank expands non-banking activities by committing NIS 98.8 million to Mifat, a company focused on waste collection, sorting, transfer stations, and landfill operations.

ByYEHUDA SHARONI

AUGUST 6, 2026 10:25

Mizrahi-Tefahot Bank is extending its reach beyond traditional banking services. Six months after initial reports about acquiring the Mifat plant from Lahav L.R, controlled by Avi Levi and investment expert Roy Vermus, the bank has announced a principal agreement to finalize the transaction.

Through its Mizrahi Invest unit under Shimrit Kenig, the bank will inject NIS 98.8 million. This values Mifat at NIS 560 million before the investment and NIS 658.8 million afterward. In return, the bank receives 15 percent of Mifat's equity. It also gains an option for an extra 5 percent stake, though total ownership stays capped at 20 percent to comply with regulations.

Transaction Terms, Valuation, and Mifat's Operations

After closing, Mifat's equity base will increase by NIS 40 million in the third quarter. The option period runs up to 30 days post-deal, with an exercise price between NIS 41 million and NIS 45 million.

Mifat operates as a private entity in waste collection and disposal, managing transfer stations, sorting facilities, and landfills. Lahav L.R controls 65 percent of its shares via Lahav Infrastructures.

The bank views this entry as a key strategic step that will support Mifat's ongoing growth, reinforce its capital position, and help achieve long-term objectives.

IPO Commitments and Banking Sector Real-Investment Expansion

A core condition requires Mifat to pursue a public listing within five years or explore alternative market entry methods. The bank also secured an option to sell its shares back to the original owners if Mifat qualifies as a significant real corporation under the Concentration Law or faces other regulatory hurdles.

Mizrahi-Tefahot has broadened its real-investment portfolio in recent years. It now aligns with Bank Leumi, a pioneer in this area, and Bank Hapoalim. Bank Discount and First International Bank of Israel have not entered the field yet, each citing distinct considerations.

Over the past four years, CEO Moshe Lari has driven this strategic shift, positioning such investments as a major growth driver. The investment arm targets infrastructure opportunities, including a 20 percent stake in Rimon Power Energy acquired for NIS 70 million and a NIS 40 million commitment to Care Laser made roughly one year earlier.