Pan European Permira Funds LLC will not buy Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). The deal reportedly collapsed because Nochi Dankner, who controls the company through IDB Holding Corp. Ltd. (TASE:IDBH) reached agreement with the Committee for Concentration in the Economy, which rendered the terms of the sale impossible.
The committee gave IDB four years to sell Clal Insurance. IDB declined to comment on the report.
"Globes" has reported about serious disagreements between IDB and Permira about the joint control structure for Clal Insurance following a sale if Permira were to acquire the company in three stages.
IDB owns 55% of Clal Insurance. Under the proposed structure of the deal, IDB would initially sell 10% of Clal Insurance to Permira, another 10% in 12 months, and the 35% balance of the stake in a further 12 months, i.e., two years after the closing.
Yesterday, Clal Insurance sold its UK subsidiary, Lloyd’s Syndicate 1301 Broadgate Underwriting (2010) Ltd. for ₤11 million, and it has signed a letter of intent to sell its US subsidiary Guard Insurance Group Inc. for $312 million. Clal Insurance is selling these operations because Permira did not want Clal Insurance's non-Israeli operations.
Clal Insurance's share price was unchanged at the opening today at NIS 54.28, giving a market cap of NIS 3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2011
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