The price reflects a company value of NIS 118.5 million for ICIC.
European credit insurance corporation Euler Hermes (XETRA; Paris: EUE) has entered the Israeli insurance market as partner in Israeli Credit Insurance Company Ltd. (ICIC) (TASE:BSSC) together with its controlling shareholders Harel Insurance Investments Ltd. (TASE: HARL), controlled by the Hamburger family, and Bituah Haklai-Central Cooperative Society Ltd..
The companies signed an MOU, under which Euler Hermes will acquire one third of ICIC for NIS 39.5 million, giving it a company value of NIS 118.5 million. They also agreed on a price adjustment mechanism that will take into account the company's financial results for 2006 when the deal finally closes. Additionally, Euler Hermes was given an option to increase its stake to 50% within three to five years. The completion of the deal is subject to regulatory approval.
Euler Hermes chairman Clemens von Weichs said, "The new shareholding structure will allow ICIC to fully benefit from this dynamism thanks to the experience of ICIC’s teams, the quality of its two Israeli shareholders and Euler Hermes’ expertise and international network. Together, the partners in ICIC will consolidate the leadership of the company and make it grow.”
Published by Globes [online], Israel business news - www.globes.co.il - on March 11, 2007
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