Shikun & Binui Controlling Shareholder Nati Saidoff Foregoes Salary Amid Massive Gains
Nati Saidoff, controlling shareholder of Shikun & Binui, is forgoing a salary as chairman but has reaped massive financial gains. With 619 million shekels in cash from share sales and a 1.5 billion shekel paper profit, his total returns approach 2.1 billion shekels following a major corporate turnaround.
Nati Saidoff, the controlling shareholder of Shikun & Binui, is forgoing a salary as chairman of the company and does not receive dividends, as the firm has not distributed any in recent years. However, with a paper profit of 1.5 billion shekels from his acquired shares and 619 million shekels in cash proceeds before taxes from shares he has already sold, his financial standing remains exceptionally strong. Shikun & Binui's general meeting of shareholders will convene next month to vote on approving Saidoff's compensation terms, which are expected to pass easily since he requested no salary or bonuses for his tenure.
Aside from directors' fees amounting to roughly a quarter of a million shekels annually—which in past years he instructed to be donated—Saidoff is entitled only to expense reimbursements for flights, travel, and hospitality during his stays in Israel, totaling about 30,000 dollars or 90,000 shekels this year. Saidoff became the controlling shareholder of Shikun & Binui in 2018 after acquiring a 47% stake from Shari Arison for 1.1 billion shekels without due diligence, securing a 13% discount on the market price. At the time, the company was grappling with serious legal challenges and bribery suspicions regarding its operations in Africa.
Expanding Involvement and Leadership Changes
In the early years, Saidoff did not take an active role in management. Tamir Cohen served as chairman and later as CEO, followed by Doron Arbali as chairman. To solidify his control, Saidoff invested an additional 418 million shekels by the end of 2022 through various stock purchases and rights offerings, bringing his total initial and subsequent investments to about 1.5 billion shekels. During this period, the company faced severe difficulties, centered on its African operations and heavy write-downs on land acquired for rental housing projects, most notably in Tel Aviv's Sde Dov.
Sharp criticism from Saidoff in 2024 led to Cohen's resignation as CEO. Saidoff stepped up his involvement and was appointed chairman in July 2024. Until then, his investments had yielded modest results, with Shikun & Binui shares rising less than 3% in the six years following his acquisition of control, compared to a 37% gain for the Tel Aviv 125 Index. The entry of Amit Birman as CEO alongside Saidoff's chairmanship marked a turning point. The company exited its African operations, expanded in the US, sold Shikun & Binui Energy, and transferred the Sde Dov rental housing projects along with their debt to another firm.
Surge in Share Value and Profits
These strategic moves breathed new life into the stock, which surged 145% over the past two and a half years, outperforming the broader market index gain of 101%. By late May, the rally pushed Shikun & Binui's market capitalization to a record 13 billion shekels, more than 10 billion shekels higher than when Saidoff took control, and drove the value of his holdings to 4.6 billion shekels. Saidoff realized tangible gains by selling portions of his stake in March 2025 and March of this year, reducing his ownership from 41% to 31% and generating 619 million shekels in cash.
Although the stock has since retreated 24% from its peak, bringing the company's valuation down to 10 billion shekels, Saidoff's current holdings are valued at 3.1 billion shekels. Combined with his cash realizations, his total gains approach 2.1 billion shekels. Associates noted that he sold shares to access liquidity due to the lack of dividends, adding that he intends to hold his remaining stake and believes the company holds significant further upside potential.
