Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) has bid NIS 2.7 billion to buy a 100% stake in Israeli credit card company Isracard (TASE: ISCD), a 30% premium on the company’s closing price on the Tel Aviv Stock Exchange (TASE) last night.
In a notification to the TASE, Harel said, “The company’s offer to Isracard’s board of directors is limited to two weeks, and if the offer is accepted, it has been proposed that the parties sign a memorandum of understanding, which will anchor the agreement for the parties.
“The structure of the financing of the deal has not yet been set but due to the financial strength of the company and its liquidity relations, the company has a range of options available for completing the deal.”
Isracard’s CEO is Ran Oz.
Harel deputy chairman Ben Hamburger said, “The credit card market has been examined deeply by us over a long period and from here we have made the offer to Isracard’s board of directors. It is our intention that Isracard will continue to operate as an independent and separate company while keeping the values of the current management and the excellence of its employees.”
The current bid comes as a similar huge deal in the Israeli market is in the process of being completed with Clal Insurance Enterprise Holdings (TASE: CLIS) buying the Max credit card company at a valuation of NIS 2.5 billion.
Published by Globes, Israel business news – en.globes.co.il – on January 9, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
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