Sources inform "Globes" that, by the end of this week, Chinese group JT Capital, controlled by Hong Kong businessman Li Haifeng, will present the group of Chinese investors joining it in buying control of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). The agreement between the Chinese group and IDB Holding Corp. Ltd. (TASE:IDBH) states that, within a certain time, the potential buyer will co-opt additional investors to finance the deal, which amounts to NIS 1.47 billion, at a valuation of NIS 4.6 billion for Clal Insurance.
The agreement is conditional upon the buyer group presenting the investors joining it within 45 days, or demonstrating that it can finance the purchase independently. This is after the Thai partner the CP group, which was to have been the leading player in the buyer consortium, pulled out of the negotiations. The 45 day period ends on Friday. If JT Capital cancels the deal for lack of the ability to finance it, it will pay IDB $28 million.
Tel Aviv District Court judge Eitan Orenstin, who has presided over the hearings of IDB's affairs, has already given his blessing to the deal being put together for the sale of 32% of Clal Insurance to the Chinese consortium. His approval is necessary for the deal to go ahead, but is not the most problematic approval required for it to be completed. That needs to come from the Supervisor of Insurance at the Ministry of Finance.
Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2013
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