The violent attacks in recent days around Japanika chain branches nationwide, including grenade throws among other incidents, have inadvertently entangled Bank Leumi, known for its conservative policies, linking it to criminal violence attributed to organized crime groups.

As a reminder, the bank's investment arm Leumi Partners, led by Victor Vekart, recently acquired 20% of Japanika for around 200 million shekels at a company valuation of one billion shekels. Sources close to the bank stated that if the chain proves involved with criminal elements, the company will exit the partnership.

This morning it emerged that branches in the Gush Dan area, owned by businessman Barak Abramov who controls Beitar Jerusalem football club, suffered an attempted arson in Givatayim and an explosive device in Ramat Gan. Dan District Police launched an investigation. Unproven speculations suggest crime organizations may be demanding protection money or that criminal elements are settling accounts with franchisees. Nothing has been confirmed so far and the matter remains under police probe.

Capital market observers estimate the events have disrupted Leumi Partners' plans to float Japanika next year or secure its maximum valuation. Recurring incidents could harm the chain's performance.

Abramov is a colorful figure whose success story began as a dishwasher in a restaurant before building an Asian food empire and acquiring Beitar Jerusalem. The Leumi Partners deal fits a wider trend of investments in dining businesses that have attracted institutional and private investors. Leumi Partners, alongside Mor pension funds, also backed the Nono Mimi group. Lantern Fund led by Richie Hunter invested in Gan Sipur and Biscotti pastries and desserts. Businessmen headed by Uri Max of Max Stock put money into the Kiso group and others.

Since assuming his role Vekart has pursued rapid investments across sectors, and the quality of the Japanika deal along with due diligence on Abramov may now face scrutiny. Nevertheless Vekart retains full support from bank CEO Hanan Friedman. Recently Leumi shareholders including insurers were asked to approve changes to Friedman's options so that exercise depends on Leumi Partners' fair value rather than bank performance and share price, signaling Friedman's belief that the new investments will outperform the bank itself.