Institutional investors holding shares in Aryt Industries expressed anger Thursday over the company’s plan to list its subsidiary, Reshef Technologies, after Aryt’s stock fell sharply on the Tel Aviv Stock Exchange.
Investors said the move primarily benefits the controlling shareholder, who they claim will “keep control while pocketing cash.” Under the offering, Aryt is selling 10% of Reshef’s shares, and the proceeds will likely be distributed as a dividend. “All shareholders will receive the dividend, but control remains unchanged,” a senior executive at a major institutional body said.
Another investor argued that minority shareholders are being pushed further away from the company’s core asset. “They’re left with a holding company trading at a discount, even though they don’t care about getting cash now. Wouldn’t it have been better for the company to raise 500 million shekels directly, like Doral did?” he said.
Aryt declined to comment on the stock’s drop, but sources close to the company said the controlling shareholder is not increasing his stake and that none of the proceeds are going to him personally.
According to those familiar with the company’s strategy, the goal is for Reshef to grow into a strong multinational player. They said the offering structure is designed to meet international standards and ensure the company meets the minimum thresholds required for global expansion.
Institutional critics also argued that strategic leadership, innovation, technological development and key decision-making will remain within Aryt, while Reshef is expected to focus on accelerated and efficient execution.