Clalit Health Services to sell Dikla Insurance stake

Capital Markets supervisor Antebi continues to push health funds out of nursing insurance.

Sources inform ''Globes'' that Supervisor of Capital Markets, Insurance and Savings Yadin Antebi and the new Clalit Health Services Ltd. CEO Eli Dafas have reached agreement on the sale of Clalit's 35% stake in insurance company Dikla Insurance Ltd., and the issuing of a tender for the health service's nursing insurance within a specified time frame.

Following lengthy discussions between the Ministry of Finance and Clalit, it was agreed that the health service would sell its holdings in Dikla, which it jointly holds with Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) by August 1, 2009. It was also agreed that Clalit would draw up a tender for its nursing cover within three years from today, meaning by 2011.

Harel owns 65% of Dikla.

The understandings between Clalit Health Services and the Ministry of Finance Capital Markets Division were made possible due to the preference of the health service's new CEO Eli Dafas for a mutually agreed settlement, in contrast to the confrontational approach of his predecessor Zeev Vurembrand.

The agreement with Clalit is the final stage in the Ministry of Finance Capital Market Division's plan which will see all the health services contract out their nursing insurance cover. The move follows last year's successful transfer by Maccabi Health Services of its nursing cover to Clal Health Insurance Ltd.

Market sources expect that Harel, which has first refusal right on Clalit's stake in Dikla, will buy out its partner.

Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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