Sources inform ''Globes'' that Clalit Health Services Ltd. has sold its 35% stake in Dikla Insurance Company Ltd. to Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) in exchange for a 4.1% stake in Harel.
The deal reflects a company value of NIS 410 million for Dikla, and the value of the shares that Clalit will receive is NIS 145 million. Harel will fully own Dikla when the deal is closed. Harel chairman Yair Hamburger and Clalit CEO Eli Dafas signed the term sheet today, and are expected to sign the final contract in a few days.
The sale was made at the order of Supervisor of Capital Markets, Insurance and Savings Yadin Antebi, who rejected the Harel-Clalit partnership in Dikla. Since Clalit is both Dikla's main customer and a major supplier, the Ministry of Finance felt that the partnership harmed competition, and compelled Clalit to sell its stake in Dikla.
In late July 2008, Clalit and Antebi agreed that Clalit would sell its stake in Dikla by July 31, 2009. On Sunday, Antebi granted the parties a brief extension to conclude their negotiations. Prof. Amir Barnea made the Dikla valuation for the purpose of the deal.
Dikla provides health and nursing insurance. The company posted a profit of NIS 42 million in 2008 and its annual premiums totaled NIS 559 million. Harel, controlled by the Hamburger family, is Israel's third largest insurance company, and the largest health insurer.
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2009
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