Who Owns Shikun & Binui Company?

Who owns Shikun & Binui?

Shikun & Binui, a global construction and infrastructure leader, traces its roots to 1924. Initially established as Solel Boneh, it was founded by Israel's General Organization of Workers with a mission to build the nation's infrastructure.

Understanding Shikun & Binui's ownership is key to grasping its strategic path and accountability. A pivotal shift occurred in June 2018 when Arison Investments divested its 47% holding to Naty Saidoff, who then became the controlling shareholder.

Naty Saidoff is the controlling shareholder of Shikun & Binui.

The origins of Shikun & Binui trace back to 1924 with the establishment of Solel Boneh by the Histadrut, the General Organization of Workers in Israel. Solel Boneh was the construction arm of the Histadrut, consolidating worker groups for infrastructure development in the Mandate for Palestine.

Founding Entity

Solel Boneh was founded by the Histadrut, the General Organization of Workers in Israel. This marked the beginning of a significant player in national development.

Initial Purpose

Its primary goal was to unify and manage construction and paving efforts. This was crucial for building infrastructure across the Mandate for Palestine.

Early Activities

Solel Boneh was involved in large-scale housing projects for the government and Histadrut housing companies. It also undertook industrial plant construction and public works.

Histadrut's Vision

The Histadrut's ownership reflected a commitment to national development and labor organization. This guided the company's role in nation-building.

Infrastructure Development

The company played a pivotal role in constructing key national infrastructure. This included significant projects like the Knesset building and major power plants.

Scope of Work

Beyond housing, Solel Boneh's operations extended to international construction and paving projects. This demonstrated its broad capabilities from the outset.

The foundational structure of Solel Boneh positioned it as a central entity in Israel's early development, responsible for extensive housing and infrastructure projects. This early role laid the groundwork for its evolution and future endeavors in construction and development.

Key Early Contributions

Solel Boneh, as the construction arm of the Histadrut, was instrumental in shaping Israel's early landscape. Its activities were deeply intertwined with the nation's growth and development.

• Establishment of Solel Boneh in 1924 by the Histadrut.
• Consolidation of worker groups for infrastructure projects.
• Construction of large-scale housing units for government and Histadrut housing companies.
• Undertaking industrial plant construction and public works.
• Involvement in international construction and paving projects.
• Construction of national landmarks such as the Knesset building, power plants, and ports.
• Reflecting a vision of national development and labor organization.

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The ownership of Shikun & Binui has seen significant shifts, beginning with its privatization in 1996. A major turning point was the 2018 sale of a substantial stake, altering the company's controlling interest and paving the way for new strategic directions.

As of March 10, 2025, Naty Saidoff remains the controlling shareholder of Shikun & Binui, holding 41.19% of the company's shares. The remaining 58.81% is publicly traded on the Tel Aviv Stock Exchange. Institutional investors collectively own a significant portion, approximately 48%, with notable holdings by Phoenix Provident Fund Ltd. (8.212%), Migdal Makefet Pension & Provident Funds Ltd. (7.605%), Menora Mivtachim Provident Funds Ltd. (6.717%), and Clal Pension & Provident Funds Ltd. (5.595%). These institutional investors, including Phoenix and Migdal which increased their stakes in August 2023, and Clal Insurance's acquisition of a 6.2% stake, play a crucial role in the company's market dynamics. The private share issue in August 2023, which raised NIS 600 million, resulted in the dilution of Saidoff's ownership from 53% to 41.19%. This shift has coincided with Saidoff's increased involvement in management, exemplified by the departure of CEO Tamir Cohen in June 2024 under pressure from Saidoff, reflecting a new phase in the Mission, Vision & Core Values of Shikun & Binui.

Key Institutional Shareholders in Shikun & Binui

Institutional investors hold a substantial portion of Shikun & Binui's shares, influencing its market performance and strategic decisions.

• Phoenix Provident Fund Ltd.: 8.212%
• Migdal Makefet Pension & Provident Funds Ltd.: 7.605%
• Menora Mivtachim Provident Funds Ltd.: 6.717%
• Clal Pension & Provident Funds Ltd.: 5.595%

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Shikun & Binui's Board of Directors is tasked with shaping the group's strategic direction, managing risks, and overseeing operational execution. The board consists of seven members, including the Chairperson, with a significant portion, four members, designated as independent directors, two of whom are external. Naty Saidoff holds the position of controlling shareholder and serves as the Chairman of the Board.

As a public entity listed on the Tel Aviv Stock Exchange, the company adheres to robust corporate governance standards. While specific details regarding share structures, such as dual-class shares, are not publicly detailed, Naty Saidoff's substantial ownership stake of 41.19% confers considerable influence and control over the company's decision-making processes. The concentration of ownership among the top two shareholders suggests a strong capacity to impact corporate direction. This level of control was underscored by the reported resignation of CEO Tamir Cohen in June 2024, which was attributed to pressure from Naty Saidoff, who aimed for a more hands-on management role. This situation highlights how voting power is largely consolidated with the primary shareholder, enabling direct influence over leadership appointments and strategic adjustments.

Understanding Shikun & Binui's Ownership Structure

Naty Saidoff is the controlling shareholder and Chairman of Shikun & Binui, wielding significant influence. The company operates under advanced corporate governance principles as a public entity.

• Naty Saidoff holds a 41.19% stake, indicating a controlling interest.
• The board composition includes independent and external directors.
• Voting power is concentrated with major shareholders.
• Recent leadership changes reflect the controlling shareholder's influence.
• Understanding Revenue Streams & Business Model of Shikun & Binui is key to appreciating the company's overall structure.

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Over the past few years, Shikun & Binui has seen significant shifts in its ownership, with its controlling shareholder diluting his stake and institutional investors increasing their participation. These changes reflect evolving investment strategies and the company's ongoing operational adjustments.

In a notable development in August 2023, controlling shareholder Naty Saidoff reduced his stake from 53% to 41% through a private share issuance that successfully raised NIS 600 million. This move saw increased investment from major institutional players, including Phoenix, which now holds 10%, Migdal with 6%, and Clal Insurance with 6.2%. This shift indicates a growing presence of institutional capital within the company's ownership structure. The company's energy subsidiary, Shikun & Binui Energy, also had a significant event with its IPO on the TASE in April 2022, raising NIS 555 million and commencing trading at a valuation of NIS 2.76 billion, with Shikun & Binui retaining a 79.9% stake post-IPO.

Leadership Transition and Shareholder Influence

In June 2024, CEO Tamir Cohen resigned, influenced by Naty Saidoff's desire for more direct management involvement. Amit Birman assumed the role of Acting CEO, highlighting the controlling shareholder's impact on executive appointments and strategic direction.

Financial Performance and Market Valuation

The company reported a first-quarter sales increase to ILS 2,210 million as of March 31, 2025, up from ILS 1,820 million in Q1 2024, with net income reaching ILS 115 million compared to a loss in the prior year. Despite this, the stock price has seen a 65% decrease from its May 2021 peak, influenced by project debt and rising interest rates. As of July 24, 2025, the stock price stood at $5.00, with a market capitalization of $2.74 billion.

Increased Institutional Ownership

As of March 10, 2025, institutional investors collectively held 48% of the company's shares. This trend shows a growing institutional presence, balancing the founder's reduced, though still controlling, stake, and impacting the overall Shikun & Binui company ownership structure.

Challenges and Strategic Adjustments

The company experienced a NIS 233 million loss in Q3 2023 due to African project disruptions and currency devaluation, projecting over NIS 250 million in losses from the Nigerian naira's decline. These factors contributed to the stock's performance and highlight the complexities of its global operations, which are relevant to understanding the Target Market of Shikun & Binui.

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