IDB's sale of Clal Insurance to Macrolink collapses

Eduardo Elsztain

The Chinese group were deterred by the uncertainty of whether the deal would be approved by Israel's regulator.

IDB Development Corp. (TASE: IDBD), controlled by Eduardo Elsztain, has reported to the Tel Aviv Stock Exchange (TASE), that the sale of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) to China's Macrolink Group has collapsed.

According to the report, Macrolink's representatives met with Ministry of Finance officials over the past few days, and were concerned about the uncertainty surrounding possible regulatory approval of the deal. Their concerns had been raised by 'developments and information about other deals in Israel's insurance market, which had increased the aforementioned uncertainty."

IDB Development said that at present there are no talks with any parties for the sale of Clal Insurance and that at board meeting would be convened to discuss the matter.

Following the failure of the talks, Moshe Tery, chairman of the Israel Securities Authority, who was appointed as Clal Insurance's trustee by the Ministry of Finance, will attempt to sell the company's shares in the way he sees fit included sales on the TASE.

It is believed that Macrolink agreed to pay NIS 2.4 billion for a 55% stake in Clal Insurance, a 70% premium on the company's market cap.

Published by Globes [online], Israel business news - - on January 6, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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Eduardo Elsztain
Eduardo Elsztain
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