Amos Luzon Increases Stake in Luzon Group Amid Management Fee Hike Proposal
Amos Luzon increased his stake in Luzon Group to 57.61% following a series of stock purchases. Shareholders will vote next month on a proposed 38% increase in his monthly management fees.
Amos Luzon has significantly increased his stake in the Luzon Group through a series of recent market acquisitions, purchasing additional shares across the group's three public companies: Luzon Group, Luzon-Ronson, and Luzon Credit.
Increasing Stakes Amid Market Fluctuations
Luzon recently acquired another 60,000 shares of the Luzon Group at an average price of NIS 4.75 per share, totaling approximately NIS 285,000. This transaction raised his direct holding in the company to 57.41%. Following several additional batches of acquisitions, his stake has now climbed to 57.61%.
Luzon's trading pattern consistently involves purchasing blocks of shares valued between NIS 200,000 and NIS 300,000. Around ten days ago, he acquired shares worth NIS 2 million. This wave of buying comes as Luzon-Ronson's stock dropped by 25% over the past three months, signaling strong confidence from the controlling shareholder despite market dips. Conversely, the main Luzon Group stock has risen by 2.3% since the beginning of the year.
"These continuous purchases demonstrate absolute commitment to the group's long-term strategy and a clear message to institutional investors," financial analysts noted.
Corporate Governance and Management Compensation
In addition to stock acquisitions, the holding company recently bought 5,000 shares of its Polish residential development subsidiary, Luzon-Ronson, at NIS 30.91 per share, amounting to roughly NIS 155,000. This purchase brought the group's holding in Luzon-Ronson to 71.84%. Prominent institutional entities, including More Investment House (holding about 12%) and Menora Mivtachim (holding about 6%), also maintain significant stakes in the group.
In the credit sector, the group holds approximately 28% of Luzon Credit (formerly the P2P platform Tarya), which is traded at a valuation of roughly NIS 220 million and engages in mortgage joint ventures alongside Nawi Company.
Next month, shareholders will convene to vote on renewing and updating Luzon's management terms and compensation for another three years. The proposed agreement includes raising his monthly management fee from NIS 260,000 to NIS 360,000 (employer cost including VAT), reflecting a 38% increase in employer cost. In gross terms, this represents a jump from NIS 197,000 to NIS 280,000 per month, bringing the company's fixed annual management cost for Luzon to approximately NIS 4.32 million.
