Mizrahi Reverses Decision to Sell Maccabi Tel Aviv Shares to Jason Levin
In a dramatic turn for Maccabi Tel Aviv BC ownership, Shimon Mizrahi withdrew his decision to sell shares to Jason Levin. Mizrahi now aims to block Richard Dietz by exercising his right of first refusal to reach a 40.5% stake.
Sudden Shift in Maccabi Tel Aviv Ownership Deal
The battle for control of the Maccabi Tel Aviv basketball club has taken an unexpected turn. Just days after Shimon Mizrahi announced he would sell a portion of his shares to American investor Jason Levin, Mizrahi reversed his decision. Currently, only Udi Recanati is set to sell a 7.5% stake in the club to Levin.
To finalize this transaction, the deal requires approval from the general shareholder assembly scheduled for Sunday. The board of directors has already granted preliminary approval, with Udi Ashkenazi, Udi Recanati, and Shimon Mizrahi voting in favor, while Richard Dietz voted against.
Mizrahi's Strategy to Secure Control
Mizrahi’s decision to retain his shares is a strategic move to block rival shareholder Richard Dietz. By keeping his current holdings, Mizrahi preserves his right of first refusal (ROFR) over Recanati's shares. Instead of diluting his position, Mizrahi can now potentially increase his stake from 14.5% to approximately 40.5%, making him the largest shareholder in the club.
Previously, Richard Dietz, who holds a 17.5% stake, announced he would exercise his ROFR on the Recanati family's shares, aiming to boost his ownership to 55.5% or even 62%. However, Mizrahi holds a special priority clause in the shareholder agreement due to his directorial status, allowing him to claim over 26% of the 29% shares the Recanati family intended to sell.
Impending Legal Battle
Should Mizrahi exercise his priority rights, the ownership structure will shift as follows:
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Shimon Mizrahi will control 40.5% of the club.
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Richard Dietz will receive only about 2% of the Recanati package. Combined with his original 17.5% and the 9% from Ben Ashkenazi, Dietz's total share would stand at 28.5%.
This maneuver is highly likely to trigger a legal battle. Dietz may argue that the actions of Recanati, Mizrahi, and Ashkenazi are designed solely to prevent him from gaining majority control, rather than serving legitimate business purposes. The final decision now rests with Sunday's general assembly.
