IDB Holding Corp. Ltd. (TASE:IDBH), controlled by chairman Nochi Dankner, today notified the TASE that it was in advanced talks with a group of Chinese investors to sell 30% of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) at a company value of NIS 4.6 billion.
The company value that IDB mentioned reflects a 25% premium on Clal Insurance's market cap. IDB Holding's wholly-owned subsidiary IDB Development owns 55% of the company.
IDB added that, under the terms of the deal, the buyer will acquire control of Clal Insurance, the parties will sign a shareholders agreement, which will include a put option for the sale of the rest of its stake in Clal Insurance to the buyer, and a call option by the buyer to acquire the rest of the stake.
The Tel Aviv District Court ordered IDB to sell half of 55% stake in Clal Insurance by August 22.
The TASE suspended trading in securities of Clal Insurance and IDB Holding and IDB Holding until 12:40 pm.
Hong Kong-based Hang Lung Group Ltd. (HKSE: 0010), controlled by chairman Ronnie Chen, which was reportedly interested in buying Clal Insurance has told "Bloomberg" that it is not the investor in talks with IDB.
Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2013
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