The insurer will get a 20% holding for its investment.
Migdal Insurance (TASE: MGDL) has acquired a stake in factoring firm Peninsula Financial Ltd., as financial investment. Migdal will inject capital into the firm to finance Peninsula's activity and growth in exchange for a 20% stake.
At the same time, and as part of the deal with Migdal, D Partners LP, a fund owned by Viola Private Equity, will increase its investment in Peninsula and make a further capital injection. In addition, Viola founder Shlomo Dovrat will take over as board chairman at Peninsula in place of Arie Ovadia. This is D Partners' second investment in Peninsula, after it led a financing round for it in the first half of 2007, which raised NIS 10 million.
Migdal's acquisition of a stake in Peninsula is not an entry by the insurance company to the factoring business, but an investment of member's funds through its investment arm. However, Migdal will nevertheless have a representative on the Peninsula board.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2008
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