Banks are allowed to hold a maximum of 20% in non-banking companies. After Koor bought back some of its shares, Hapoalim's holding was lifted from 20% to 22%, roughly speaking.
The temporary permit is conditional on Hapoalim refraining from buying any more controlling shares in Koor, and selling its extra holdings within two years as of acquisition.
These details came to light in Hapoalim's prospectus to hold a notes offering.
The prospectus also reveals that Koor may decide to re-assess the value of its holdings in ECI Telecom (Nasdaq:ECIL) on September 30 for the purposes of its financial statements.