Alfred Akirov has slammed the acquisition of management of bank card firm Max by Clal Insurance coverage Enterprises Holdings (TASE: CLIS) board permitted the deal for the acquisition of bank card firm Max. Akirov, the controlling shareholder in Alrov Properties and Lodgings (TASE: ALRP), is the most important shareholder in Clal Insurance coverage with a 15% stake.
Akirov has been managing a fierce marketing campaign in latest weeks towards Clal Insurance coverage CEO Yoram Naveh’s plans to purchase management of Max from US non-public fairness agency Warburg Pincus at an organization valuation of NIS 2.47 billion. The worth of the deal has fallen under NIS 2.4 billion since Clal signed a binding settlement to purchase Max in August as a result of 25% of the fee is in shares however Akirov nonetheless insists Clal is paying a bloated worth. “This can be a ridiculous deal,” Akirov stated.
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Akirov advised “Globes,” “I did not purchase Max, I purchased shares in Clal Insurance coverage. The Max deal cuts Clal’s worth to the ground. The deal was achieved at a ratio of 160% to fairness, at a time when rival Isracard (TASE: ISCD) is being traded on the Tel Aviv Inventory Trade at 70% of fairness.”
Akirov says that the deal was achieved as a result of Clal Insurance coverage has no controlling shareholder and so the managers management it and they’re harming the funding made by shareholders.
Akirov contrasts Clal Insurance coverage’s acquisition of management of Max with one other Israeli insurance coverage firm Israel Phoenix Assurance Ltd’s (TASE:PHOE1; PHOE5) acquisition of a 20% stake in automobile importer Meir Group at an organization valuation of NIS 3.8 billion. He described that as a wonderful deal not constructed on administration of the Meir Group by Phoenix.
Clal Insurance coverage stated, “Clal Insurance coverage doesn’t conduct confrontations with shareholders by means of the media however prefers to behave responsibly in direction of the corporate and launder all the problems which can be on its agenda within the applicable locations and within the applicable boards, in accordance with the foundations of correct company governance.”
Printed by Globes, Israel enterprise information – en.globes.co.il – on November 28, 2022.
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