Bank Leumi (TASE: LUMI) has confirmed a report first published a month ago by "Globes" regarding talks for the sale of a stake in credit card company Leumi Card Ltd. to Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL). The bank said today that it was holding talks with Migdal for the sale of 10% of Leumi Card (a wholly owned subsidiary of Bank Leumi), at a company value of NIS 1.5 billion.
Bank Leumi added that Migdal would be given an option to acquire a further 10% of Leumi Card at an agreed price.
"Globes" first reported a month ago that Migdal, Israel's largest insurance company, managed by CEO Izzy Cohen, was in advanced talks to acquire 20% of Leumi Card at a company value of NIS 1.6 billion.
Migdal intends to enter the consumer credit business either through a collaboration either with one of the credit card companies or with one of the retail chains offering combined customer loyalty and credit cards. Leumi Card is Migdal's preferred option, and the company will decide on which track to proceed in the coming days.
Bank Leumi previously owned Migdal and it still holds a 10% stake in it. Migdal also recently acquired Leumi's Kahal Employees Supplementary Training Fund.
Published by Globes [online], Israel business news - www.globes.co.il - on March 12, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007