Settlers from the occupied Palestinian territories, namely the settlement of Kibbutz Hanita, located near the Lebanese border area, have filed a lawsuit seeking about $11 million from Ballet Vision, the Chinese investment fund that controls the Hanita Lenses plant, accusing it of refusing to honour an option to purchase the kibbutz’s remaining shares.
The lawsuit, filed with the Tel Aviv District Court, says Ballet Vision, which holds roughly 80% of Hanita Lenses, has declined to buy out the kibbutz’s minority stake, despite a deadline set for December 2025.
In a response letter attached to the filing, the fund cited political and regulatory constraints, saying Beijing has classified the occupied Palestinian territories as a “high-risk area” since the outbreak of the war and has barred any new Chinese investments there.
“Since the outbreak of the fighting in Israel, the Chinese government has classified Israel as a high-risk zone (red category) and prohibited any new Chinese investment,” the fund wrote. “As long as this restriction remains in place, there is no practical operational ability to exercise the option.”
Share sale and dilution claims
According to the lawsuit, in 2021, the kibbutz sold 74% of Hanita Lenses, a manufacturer of intraocular lenses for medical use, to Ballet Vision for $35 million. Of that amount, $25 million was taken by the settlers, while $10 million was injected into the company.
As part of the deal, the Chinese fund granted the remaining shareholders an option allowing them to compel Ballet Vision to purchase their remaining shares for about $9.5 million, a sum now valued at roughly $11 million.
The kibbutz claims its stake was further diluted in two subsequent agreements signed in 2022, ultimately leaving Ballet Vision with around 80% ownership. One dilution followed an additional $7 million investment, while another was linked to a future $8 million investment that has yet to be completed.
In December, the kibbutz formally notified the fund of its intention to exercise the option, arguing that the funds are urgently needed due to the impact of the war. Hanita, which lies close to the border, has faced what the lawsuit describes as two exceptionally difficult years, with the money required for rehabilitation efforts, particularly for elderly residents.
Governance dispute and financial distress
The lawsuit also alleges that representatives of the settlers have effectively been sidelined from company management, claiming Hanita Lenses is now run centrally by representatives of the Chinese owner and that the board no longer convenes. Under those conditions, the kibbutz said retaining shares has become “meaningless.”
Ballet Vision, however, pointed to heavy financial losses as a second reason for refusing the buyout. In a December letter, Liu Yuxiao, a Ballet Vision director and acting chief executive of Hanita Lenses, said the company had accumulated operational losses of about $15 million over three years, alongside bank debt of roughly $4 million, placing it in severe financial distress by early 2025.
Yuxiao said he assumed the CEO role in March 2025 to avert bankruptcy and claimed the company is now on track to reach operational break-even this year. He argued that executing the share purchase option at this stage would be premature and could jeopardise the company’s recovery.
He also reiterated that Chinese government restrictions have forced the fund to rely on shareholder loans rather than fresh capital injections, further limiting its ability to finance the business or complete the buyout.
‘Israel’ put itself in a precarious position
The Israeli occupation waged a devastating war on the Gaza Strip on October 7, 2023, one in which they killed tens of thousands of Palestinians and devastated the Palestinian territory for well over two years.
Though a ceasefire has been put in place since October 10, 2025, “Israel” has violated it daily, killing Palestinians and preventing aid from flowing into the Strip.
