The company value for the deal is NIS 1.6 billion.
Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) is in advanced negotiations to buy 20% of Leumi Card Ltd. from Bank Leumi (TASE: LUMI) at a company value of NIS 1.6 billion.
Bank Leumi said in response, “As we’ve reported in the past, the bank is constantly involved in ways to create value. Beyond that, we have nothing to say.”
Migdal wants to enter the consumer credit market by collaborating with a credit card company or customers club that owns a credit card (such as New Hamashbir Lazarchan Ltd.’s 365 Club or Super Pharm Ltd.’s Life card). Migdal prefers Leumi Card, and a decision on how the company will move forward on a deal is expected within a few days.
Bank Leumi once owned Migdal, and still has a 10% holding in the company. Migdal recently bought Kahal Employees Supplementary Training Fund Ltd. from the bank
Published by Globes [online], Israel business news - www.globes.co.il - on February 11, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007