Mizrahi Tefahot Bank (TASE:MZTF) has signed an MOU to acquire Bank Hapoalim’s (LSE: BKHD; TASE: POLI) 50% stake in Bank Yahav for Government Employees Ltd. for NIS 237-255 million. Mizrahi Bank will pay a figure on the basis of 162-174% of Bank Yahav’s shareholders’ equity, in order to maintain its mandatory minimum capital adequacy ratio of 10%.
Mizrahi Bank will pay the higher figure if the Ministry of Finance Accountant General’s Department does not publish a tender for the provision of banking services to government employees.
Bank Hapoalim will continue to provide Bank Yahav with operating services for three years. The boards of both Bank Hapoalim and Mizrahi Bank must approve the sale, and the regulators must approve it.
Bank Hapoalim said that it decided to sell its stake in Bank Yahav because of expected developments in the banking sector, and because of business and financial considerations.
The Histadrut (General Federation of Labor in Israel) and the state each own 25% of Bank Yahav.
Published by Globes [online], Israel business news - www.globes.co.il - on March 27, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007