Investment house Altshuler Shaham Ltd. is preparing for a possible acquisition of more pension assets and an expansion of its collaboration with provident fund management companies. Sources inform ''Globes'' that the company plans to raise NIS 100 million in an issue of straight bonds, and that it is waiting for a bond rating from Midroog Ltd.
Capital market sources believe that two primary reasons are apparently behind Altshuler Shaham’s planned offering. The first is related to the present market conditions, which are better than a loan because of the low interest rate and institutional investors’ surplus liquidity. The second reason is related to the investment house’s expansion plans in several areas, primarily pensions.
Altshuler Shaham apparently plans to use proceeds from the offering to expand its activity in the pension market, particularly provident funds. The company wants a real foothold in the investment management of companies and Histadrut (General Federation of Labor in Israel) provident funds.
Altshuler Shaham predicts that its new pension fund will begin operations in early 2008. The company has also been considering an IPO on the Tel Aviv Stock Exchange (TASE) for a long time, but has not yet made any decision on the matter. The company feels that this is a complicated matter, and views the resulting transparency and disclosure requirements as problematic, possibly too much so.
Published by Globes [online], Israel business news - www.globes.co.il - on June 11, 2007
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