Arit After the Reshef Option Cycle: How Much Cash Became Accessible and How Much of the Asset Was Diluted
The Reshef share sale and option exercises did more than enlarge the consolidated cash pile. They moved hundreds of millions of shekels up to the parent level, but Arit's stake in Reshef fell from 99.8% to 77.6%. The right question now is not how much cash sits in the group, but how much of it truly sits above Reshef and what the dilution cost was.
What This Follow-Up Is Isolating
The main article made the broad point: the Reshef capital cycle sharply improved liquidity, but it also cut Arit's ownership in its main operating asset. This follow-up isolates the math across three layers: how much cash remained inside Reshef, how much truly moved up to Arit as the listed parent, and how much of that now looks like money that can actually reach Arit shareholders.
That distinction matters because consolidated cash is not automatically shareholder cash. In holding structures built around a strong operating subsidiary, it is easy to look at group liquidity and forget that some of it still sits in the subsidiary, some of it is offset by tax, and some of it arrived only because the parent sold down part of the asset. That is exactly what happened here.
The positive news is that the transaction really did change the parent-level liquidity position, not just the consolidated presentation. The less comfortable news is that the cash did not arrive for free: within one cycle, Arit gave up 22.2 percentage points of Reshef ownership and transferred 22.4% of the operating company to outside investors.
Three Layers of Cash, and Only One Is Truly Parent Shareholder Cash
The first layer is Reshef itself. In December 2025, Reshef issued 38.168 million new shares and received half of the initial proceeds, about NIS 300 million gross. Later, in each option exercise, it issued more shares and again received half of the proceeds. At the Reshef level, this is a capital strengthening event.
The second layer is Arit as the listed parent. This is where the more important change for Arit shareholders took place. In Arit's separate 2025 cash-flow statement, there is an investing inflow of NIS 292.2 million from the sale of shares and options into a subsidiary. That is no longer "group cash." That is cash sitting above Reshef.
The third layer is Arit shareholders themselves. Only what Arit decides to distribute reaches this level. That is why the March 26, 2026 dividend declaration of about NIS 78 million matters. It does not mean all the money has already reached shareholders, but it does show that at least part of the value has started the path from Reshef to Arit and from Arit toward the public shareholders.
This is the central point: for the first time, the distance between value created inside Reshef and cash accessible at the listed-parent level became much shorter.
How Much Cash Really Moved Up to the Parent
The cleanest number disclosed for 2025 is NIS 292.2 million. That is the amount recorded in Arit's investing cash flow from the sale of shares and options into a subsidiary, net of the December 2025 transaction costs at the parent level.
But that is not the full story. The separate statements also show that in 2025 Arit received NIS 99.79 million of dividends from an investee. Against that, Reshef's dividend disclosure shows that on September 30, 2025 Reshef distributed NIS 100 million, while the portion allocated to non-controlling interests was only NIS 209 thousand. In other words, almost that entire dividend effectively moved up to the parent. That is far more accessible to Arit shareholders than cash left sitting inside Reshef.
After the balance-sheet date, all of the options were exercised. Precision matters here. The director report explicitly states that the proceeds from the exercise of the convertible instruments, about NIS 300 million, were to be split equally between Reshef and Arit. So at the gross level, another NIS 150 million was opened to the parent after December 31, 2025.
But it would be wrong to treat all of those figures as fully free cash. In the separate statements at December 31, 2025, Arit already recorded a current tax liability of NIS 53.78 million tied to the Reshef monetization. It also recorded a NIS 15.584 million liability for options to sell subsidiary shares. So even at the parent level, part of the value has already moved out of theory, but not all of it is frictionless yet.
| Layer | Amount | What it means in practice |
|---|---|---|
| December 2025 Reshef share sale, net | NIS 292.2 million | Cash already recorded in Arit's own cash flow |
| Dividend received by Arit from Reshef in 2025 | NIS 99.79 million | Cash moved up to the parent, not just left inside the subsidiary |
| Post-balance-sheet option exercises, gross parent share | NIS 150 million | Additional parent-level access, but the report does not separately disclose the parent's exact net amount after exercise costs |
| Capital gains tax recorded at the parent | NIS 53.78 million | A real friction item that reduces what is left in the end |
| Dividend declared by Arit after the balance-sheet date | NIS 78 million | Practical evidence that part of the cash is already moving toward shareholders |
This chart is not a final free-cash figure. It shows what can be identified directly in the filings as money that moved up to the parent or was recorded against it. That distinction matters because the report gives the December 2025 leg net, the option-exercise leg gross, and the tax as a separate liability. The mistake here would be to take the full NIS 450 million headline share allocated to Arit across the cycle and assume all of it already sits as unrestricted cash.
What Is Already Liquid at the Parent, and What Should Not All Be Attributed to Reshef
The separate statements at December 31, 2025 show a dramatic jump in parent-level liquidity: NIS 204.2 million of cash and cash equivalents plus NIS 340.8 million of financial assets at fair value, versus only NIS 104.3 million of those two categories combined at the end of 2024. That is a very large change, and it proves the Reshef cycle did not remain only a story of a better funded subsidiary.
Still, it would be wrong to attribute the entire roughly NIS 545 million to Reshef alone. In 2025, Arit also raised NIS 97.0 million net in its own equity issuance, and in parallel it used NIS 193.5 million for net purchases of financial assets. So the parent cash position is already the result of several moves working together: partial monetization of Reshef, dividends lifted from Reshef, Arit's own equity raise, and a capital-allocation decision into securities.
The analytical implication is that the cash did become more accessible to Arit shareholders, but the right reading is not "NIS 450 million came out of the subsidiary, so it is now all clean parent cash." The right reading is this: a large part of the value has indeed moved up to the parent, part of it has already been distributed or earmarked for distribution, and part of it still sits in marketable securities or is offset by tax.
The Price of the Transaction: Not Just More Cash Upstream, but 22.2 Points Less of Reshef
This is the other side of the trade. Before the cycle, Arit held about 99.8% of Reshef. After the December 2025 private transaction it dropped to 84.4%. After all option exercises it dropped to 77.6%.
That sounds technical, but it is not a footnote. Economically, it means Arit did not just fund Reshef. Across the cycle, it also sold 57.252 million Reshef shares that it already owned: 38.168 million in December 2025 and another 19.084 million through the option exercises. In parallel, Reshef itself issued exactly another 57.252 million new shares. Half of the money came from monetizing part of the parent's stake in the asset, and half came from dilution inside the asset.
In plain terms, Arit shareholders got a double transaction: Arit pulled value up to the parent level, while also giving up part of its future participation in every later profit, dividend, or exit value generated by Reshef.
And the full-cycle table shows just how clearly that ownership erosion took place in steps, not in one headline event:
| Stage | Gross proceeds | Gross parent share | New Reshef shares issued | Shares transferred by Arit | Arit stake after the stage |
|---|---|---|---|---|---|
| December 2025, initial private package | NIS 600 million | NIS 300 million | 38,168,000 | 38,168,000 | 84.4% |
| January 15, 2026 | NIS 50 million | NIS 25 million | 3,180,750 | 3,180,750 | 83.25% |
| January 22, 2026 | NIS 50 million | NIS 25 million | 3,180,750 | 3,180,750 | 82.09% |
| January 27, 2026 | NIS 100 million | NIS 50 million | 6,361,250 | 6,361,250 | 79.82% |
| February 3, 2026 | NIS 10 million | NIS 5 million | 636,075 | 636,075 | 79.59% |
| March 10, 2026 | NIS 75 million | NIS 37.5 million | 4,771,000 | 4,771,000 | 77.93% |
| March 19, 2026 | NIS 15 million | NIS 7.5 million | 954,175 | 954,175 | 77.60% |
The right interpretation is not that Arit "unlocked value without paying for it." It exchanged part of a near-full ownership stake in a strong operating asset for much higher parent-level liquidity. As long as Reshef keeps compounding, that may prove to have been the right trade. But from here onward, every extra shekel Reshef creates no longer belongs almost entirely to Arit. It belongs to Arit only at 77.6% of the equity layer, before further frictions.
So How Much Cash Really Became Accessible to Arit Shareholders
The short answer is: far more than before, but less than the NIS 450 million headline figure.
If the question is what was clearly proven at the parent level by year-end 2025, the answer is NIS 292.2 million net from the sale of part of the Reshef stake and almost NIS 99.8 million of dividend lifted from Reshef. Once the post-balance-sheet option exercises are added, it is also clear that another NIS 150 million gross opened to the parent. Once the recorded capital gains tax is added back into the picture, it becomes obvious that the amount accessible to shareholders is lower than the gross headline, but still highly material.
In that sense, this cycle did break the classic holding-company trap. It pulled a real piece of value out of the subsidiary and up to the parent, and the NIS 78 million dividend declaration shows that at least some of the money has already started the last leg outward to Arit shareholders as well. But the less comfortable truth has to be said in the same breath: shareholders got cash today in exchange for owning less of Reshef going forward.
Conclusions
The sharper continuation conclusion is this: the Reshef monetization did not just strengthen the balance sheet, it turned part of Reshef's value into cash that is truly accessible at Arit's level. This is no longer just a paper-value story. The separate statements, the cash-flow lines, and the March 2026 dividend declaration all show that the path from subsidiary value to parent shareholder access has genuinely opened.
But this is not free cash layered on top of the exact same asset. It is cash that arrived through sale and dilution of that asset. In one cycle, Arit moved from almost full ownership of Reshef to only 77.6%. The next investor question is therefore not only how much cash is accessible now, but whether 77.6% of Reshef, after the capital injection and after the market-opening moves, will generate enough value to justify giving up 22.2 percentage points of the asset in the first place.
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