Leader Capital Markets Ltd. reported today that it had signed an agreement to sell its underwriting and brokerage operations (its holdings in subsidiaries Leader Underwriters Ltd. and Leader and Co. Investment House Ltd. to a group of buyers, headed by Amit Vardi, for NIS 25 million.
According to the agreement, the buyers will pay Leader Capital Markets NIS 10 million in cash upon deal completion, and the rest of the sum will be lent by the seller to the buyer's parent company, which will provide the money to the buyer. Completion of the deal is scheduled for September 30, 2016.
Completion of the sale agreement depends on several preconditions, including court approval to split Leader Investments House, a corresponding authorization from the Tax Authority, and agreement by First International Bank, a shareholder in Leader Underwriting, that it will not seek to realize its right to participate in the sale deal.
Leader Capital Markets is traded on the Tel Aviv Stock Exchange at a market cap of NIS 550 million. Its share price fell slightly today, but in the past three years it has risen 150%.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2016
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