The investor will match Clal Insurance's investment in Clal Romania.
IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) is in advanced negotiations to set up a partnership for its Romanian business. If the talks succeed, Clal Insurance will seek to expand its business to other Eastern European countries.
Clal Insurance has been active in Romania since late 2006. It recently signed an agreement with a company, whose identity has not been disclosed, to sell half its stake in a Netherlands registered holding company subsidiary, CIE, through which it owns Clal Romania. Clal Romania is the only holding of CIE. Under the letter of intent, the investor will invest an amount that matches Clal Insurance's investment in Clal Romania.
Clal Insurance's actual holding in Clal Romania will be subject to dilution following its allocation of a stake to TRS Investment Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on April 22, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008