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."