Africa Israel Investments

Early years

Africa Israel Investments was founded in 1934, during the British Mandate, by Jewish investors from South Africa who wanted to support development in the local economy of the Yishuv. After the establishment of the state of Israel the company expanded its commercial and financial activities and was one of the first companies in the country whose shares were traded on the Tel Aviv Stock Exchange. In the early 1970s control of the company was acquired by Bank Leumi. From 1978 to 1996 Shlomo Grofman served as President and CEO of the company. In early 1997, Lev Leviev acquired control of the company and Grofman left.

Acquisition by Lev Leviev

In November 1996, the diamond cutter and diamond merchant Lev Leviev acquired control from Bank Leumi; he soon expanded the group’s activities into new markets and territories. Including: energy – Dor-Alon in Israel, US and Europe. Real Estate – AFI development, Russia, USA and Europe. Manufacturing – AFI Industries (by acquiring Packer Plada).

Debt restructuring

After the 2008 financial crisis, the company was hurt by the drop of real estate values in the United States, Russia and eastern Europe. It defaulted on a series of bonds and in 2010 it restructured 7.4 billion shekels of debt.

In 2016, the company sought a second debt settlement. In a recorded conversation that was leaked to Israel Channel 10 News, Lev Leviev is heard saying: "I shit on every bank, but they haven't been able to make me move a centimeter because I don't owe any of them money, to no bank in the world. I piss on every bank from above, even Rakefet" (referring to Bank Leumi CEO Rakefet Russak-Aminoach).

Controversy

The company became the subject of newspaper coverage in 2008, for Leviev's association with the construction of Israeli settlements on the West Bank. The British Embassy in Israel was planning to move into the Kirya Tower, one of its buildings, but cancelled when these ties were revealed in the British media.

In September 2009, Leviev's empire was on the verge of collapse. During the real estate bubble of the early 2000s, he had borrowed huge sums of money to acquire property around the world, including America. As American real estate prices plummeted and market values declined to less than half of what Leviev had paid for properties, so did the value of Africa Israel investments. Leviev said: "Our main mistake was the investments in the U.S."

In 2009, Africa Israel's recently constructed private prison near Beersheba was banned by Israel's High Court of Justice. The prison had not yet been occupied when it was declared unconstitutional.

In 2009, BlackRock divested from the company, allegedly "due to firm's involvement in West Bank settlement construction."

Alon Group: Consists of Dor Alon Oil TASE: DRAL, Israel's largest international energy group; Alon USA Energy, Inc. NYSE: ALJ which operates the Big Spring refinery, 1,700 FINA gas stations in several states, terminals, more than 1,850 miles of oil pipelines, asphalt factories and more than 170 7-Eleven convenience stores.

Dor Energy: A national network of gas stations and Super Alonit convenience stores in Israel, controlling also Blue Square, Israel's third largest supermarket chain.