Dankner strikes Clal Insurance sale deal with Hong Kong firm

By ADI BEN-ISRAEL/GLOBES
August 21, 2013 11:41
1 minute read.

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

IDB Holding Corp. Ltd., controlled by Nochi Dankner, announced an agreement this morning for the sale of 32% of Clal Insurance Enterprises Holdings Ltd. within 45 days at a company valuation of NIS 4.5 billion. Clal Insurance currently has a market cap of NIS 3.52 billion, so that the price tag incorporates premium of 30%.

IDB Development, which holds 54.97% of Clal Insurance, will receive NIS 1.472 billion for the shares, if the deal is completed. Tel Aviv District Court Judge Eitan Orenstin gave Dankner a deadline for selling Clal Insurance that expires tomorrow.

The buyer, JT Capital Management, is a company incorporated in Hong Kong and entirely held by Li Haifeng, a Hong Kong businessman. Within 45 days, JT Capital is to produce the names of the other members of the buying consortium (up to three other corporations) that will join it in the deal, and also the names of the entities that, directly or indirectly, will provide financing.

The parties gave each other a call and put option on IDB's remaining 22.97% stake in Clal Insurance. "Therefore," states IDB Development, "IDB Development expects an additional cash flow of more than NIS 1 billion from the exercise of the put option."

Related Content

Breaking news
August 20, 2018
King of Morocco appoints new minister for economy and finance

By REUTERS