💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

IDB in talks to sell Clal Insurance stake to Permira

Published 01/27/2011, 02:58 AM
Updated 01/27/2011, 03:00 AM
GC
-

* Permira does not have exclusivity in talks

* Globes: deal would value Clal Ins at $1.9 bln

TEL AVIV, Jan 27 (Reuters) - IDB Holding Corp is in talks to sell all or part of its 55 percent stake in Clal Insurance to private equity firm Permira, the Israeli holding company said on Thursday.

"The two sides have not yet reached an agreement regarding a deal, including the price," IDB said in a statement to the Tel Aviv Stock Exchange.

"At this stage Permira is expected to widen its examination of Clal Insurance," the statement said, adding IDB is not committed to any deal with Permira and is free to hold talks with other potential buyers.

The Globes financial newspaper reported that the price for the deal would value Clal at about $1.9 billion, or $1.04 billion for IDB's stake. Clal Insurance has a market value of 5.7 billion shekels ($1.6 billion).

In May, IDB said it had received queries from local and foreign investors about buying Clal Insurance, Israel's second largest insurer. IDB hired Goldman Sachs to handle the sale.

Israeli media have reported that IDB decided to sell Clal Insurance following comments from Prime Minister Benjamin Netanyahu that he would take action to limit the "concentration of economic power" in the "hands of the few".

IDB also controls Cellcom, Israel's biggest mobile phone operator, and Super-Sol, the country's largest supermarket chain.

IDB unit Koor Industries signed a deal earlier this month for China National Chemical Corp to buy 60 percent of MA Industries, the world's biggest maker of generic crop protection chemicals, in which Koor owns 47 percent. The deal values MA at $2.4 billion. ($1 = 3.61 shekels) (Reporting by Tova Cohen; Editing by Jon Loades-Carter)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.