IDB Holding Corp. Ltd. (TASE:IDBH) today announced further progress in the agreement to sell a stake in Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). The buyer, JT Capital Management Ltd. of Hong Kong, transferred an additional $7.7 million to the trustee on Friday.
The deposit is in addition to the $20 million that JT Capital deposited with the trustee when the sale agreement was signed on August 20, and brings to NIS 100 million the amount that the Chinese group has put to secure its commitments and pay compensation if it does not meet the terms of the agreement.
Under the agreement, IDB Development will sell 32% of Clal Insurance to JT Capital for NIS 1.47 billion, at a company value of NIS 4.6 billion. The parties granted reciprocal call and put options for the balance of IDB's shares in Clal Insurance, which will guarantee IDB Development a cash injection of more than NIS 1 billion in a year, if the put option is exercised.
On August 26, Tel Aviv District Court Judge Eitan Orenstin agreed to IDB Development's motion to approve the sale of Clal Insurance. "In view of the points of the motion, the advantages claimed by the company in contracting the deal, and the absence of objections, I hereby approve the motion," ruled the judge. He added that the company will update the court on the progress of the deal.
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013