Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) is negotiating to acquire the controlling interest in IBI Investment House Ltd. (TASE:IBI) and merge it with its own financial arm, Africa-Israel Finance 1985 Ltd.
Africa-Israel executives said that the company would exploit its power to become an important player in the financial sector, and IBI is a company that would generate synergy.
IBI Investment House has a market cap of NIS 727million. Sources believe that Africa-Israel will pay a 10-15% premium for the company, giving a company value of around NIS 800 million.
In a notice to the Tel Aviv Stock Exchange (TASE), Africa-Israel said, “There is no assurance that these preliminary talks will result in an agreement.”
In recent months, Africa-Israel Finance has acquired 10% of Emda - Trust Fund Management Ltd. from Mizrahi Tefahot Bank (TASE:MZTF) and half of Artrade Financial Engineering Ltd. (now Africa-Israel Investments House Ltd.)Market source predicted that Africa-Israel chairman Lev Leviev would make more financial acquisitions.
Interestingly, former Comverse chairman and CEO Kobi Alexander owns 17.6% of IBI Investment House. Source do not think that Leviev is seeking to buy his stake.
Published by Globes [online], Israel business news - www.globes.co.il - on July 4, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007