Direct Finance enters business credit with the acquisition of control in Sigma City

• The subsidiary, Direct Finance Real Estate and Mortgages, signed an agreement to acquire 85% of the share capital (on a fully diluted basis) of Sigma City Real Estate Finance from some of its existing shareholders
• The consideration for the acquired shares totals ~NIS 34 million; in addition, the subsidiary will provide Sigma City with financing to repay shareholder loans totaling ~NIS 29 million
• Sigma City’s loan portfolio totaled ~NIS 153 million as of June 30, 2026, and the weighted interest rate on the portfolio stood at 12.6%
• The remaining shares will be held by Sigma City’s existing managers, Uri Dayan and Natan Toviana, who will continue in their roles after the transaction closes
• Closing is subject to conditions precedent, including receipt of an updated control permit from the Capital Market, Insurance and Savings Authority and the required approvals from the financing banks

Direct Finance (Mimun Yashir) reports that its subsidiary, Direct Finance Real Estate and Mortgages, has signed an agreement to acquire 85% of the share capital (on a fully diluted basis) of Sigma City Real Estate Finance, which operates in non-bank credit for real estate developers. In consideration for the acquired shares the subsidiary will pay a total of ~NIS 34 million, and will in addition provide Sigma City with the financing required to repay shareholder loans totaling ~NIS 29 million. The remaining shares will be held by Sigma City’s existing managers, Uri Dayan and Natan Toviana, who will continue in their roles after closing. The transaction is Direct Finance’s first step toward establishing an operation in business credit.

We are pleased to report the expansion of our activity into secured business credit as well, through the signing of the agreement to acquire Sigma City. This move is a strategic step for us in broadening the company’s financing activity and creates an additional growth engine.

Sigma City has extensive experience and a proven track record in supporting real estate projects in Israel by providing credit for equity completion. We intend to strengthen this activity and even expand it into further areas, such as senior financing of residential construction projects. We believe Sigma City is an excellent platform for us to enter the world of business credit, and that this is a first step toward establishing a new business division within Direct Finance.

Key transaction terms

• Transaction scope: ~NIS 34 million for 85% of Sigma City’s share capital, on a fully diluted basis.
• Additional financing: The subsidiary will provide Sigma City with the financing required to repay shareholder loans totaling ~NIS 29 million.
• Sellers and management: The shares are being acquired from some of the existing shareholders. The remaining shares will stay with the existing managers, Uri Dayan and Natan Toviana, who will continue in their roles.
• Conditions precedent: Closing is subject to customary conditions precedent, including receipt of an updated control permit from the Capital Market, Insurance and Savings Authority and the required approvals from the financing banks.
• Loan portfolio: As of June 30, 2026, Sigma City’s loan portfolio comprised short-term loans totaling ~NIS 105 million and long-term loans totaling ~NIS 48 million (including accrued interest).
• Portfolio terms: Most of the loans bear interest linked to prime plus a margin. As of June 30, 2026, the weighted interest rate on the portfolio stood at 12.6%.

About Sigma City

Sigma City is a private company operating in non-bank credit and financing solutions. It was founded in 2015 by the Sigma investment house together with additional partners from the fields of finance, development and real estate marketing. Its team is made up of professionals from the banking system, the capital market, property appraisal and real estate, who support developers and provide them with a financing envelope alongside professional and financial guidance on real estate projects. The company provides financing for residential construction development projects in Israel, including equity completion (mezzanine) for developers in urban renewal, as well as financing for projects after a building permit has been obtained and under the supervision of a financial institution. The financing solutions it provides serve, among other things, as part of the minimum equity required to advance a project in line with regulatory standards and requirements, with an emphasis on small and medium-sized developers.

About Direct Finance

Direct Finance (Mimun Yashir), led by Eran Golan, is a public company traded on the Tel Aviv Stock Exchange and one of the leading non-bank consumer credit companies in Israel. The company operates in auto loans and mortgages, and operates the digital platform Carwiz and the leading Israeli automotive content website and magazine “Auto”. As of June 30, 2026, Direct Finance’s active loan portfolio totaled ~NIS 20.2 billion (including loans assigned to third parties). A significant portion of its loans is originated digitally, and the company excels in its technology systems and business innovation, which provide it with great flexibility, the ability to develop innovative products and competitive business advantages.

About Zur Shamir

Zur Shamir is a leading holding company investing in insurance, finance, income-producing real estate and global financial services. The company holds, through Direct Insurance — Financial Investments (88%), ~41% of IDI Insurance, the pioneer of direct insurance in Israel, operating for over 30 years and the largest in its field. In addition, it holds ~44% of Direct Finance, the leading company in auto loans and a growing mortgage lender; ~54% of Adgar, operating in income-producing real estate with assets totaling over NIS 5 billion. Direct Insurance also holds ~98% of Neema, which engages, inter alia, in global financial services including via a money-transfer application.