Hapoalim deal for Ukrainian bank fizzles

Bank of Israel rejects plan to buy won't be buying Ukrainian Innovation Bank.

October 27, 2008 09:15
1 minute read.
shekels coins 88

shekels good 88. (photo credit: )


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


The Bank of Israel has nixed Bank Hapoalim's plan to buy a Ukrainian bank. "Late Thursday evening, the governor of the Bank of Israel canceled the permit for the purchase of Ukrainian Innovation Bank [also known as Ukrinbank] because of recent economic developments in global financial markets and concerns regarding the impact on financial institutions around the world," Bank Hapoalim said in a statement to the Tel Aviv Stock Exchange on Sunday. Last December, Bank Hapoalim agreed to buy a 75.8 percent stake in Ukrinbank through Tarshish Ltd., a wholly owned subsidiary, for $136 million, valuing the whole bank at $180m. "The move shows that the central bank's supervision of banks is taking early steps to avert any increase in risk exposure and in this case it is Bank Hapoalim," said Yuval Ben-Zeev, head of Clal Finance Brokerage's research division. "The central bank's message is 'watch your money,' [and] this is the central role of the supervision of banks." Hapoalim originally had said the planned acquisition of Ukrinbank was part of its strategy to increase its international activities to one-third of its total banking operations. Ukrinbank was founded in 1989 and is the country's oldest private bank. Headquartered in Kiev, it has 30 branches and more than 100 outlets across 24 districts in the Ukraine. Last November, Hapoalim received regulatory approval to acquire control of Kazakhstan's Demir Kazakhstan Bank through a Turkish bank in which it had bought a majority stake in February.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection


Cookie Settings