The firm sees further investment in order to bring its new acquisition back to issuing policies.
Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) has acquired the controlling stake in Turkish insurance company Turk Nippon Sigorta AS for 3 million Turkish lira, or NIS 9 million. Turk Nippon has not issued any new policies in the past four years and is currently in run-off status. Before then it held an insurer's license to provide elementary insurance. Harel intends to renew Turk Nippon's license and operate it as an insurer providing all types of elementary insurance to the local market.
The deal is conditional on a number of dependent conditions, including obtaining the relevant regulatory approval in Turkey. Harel said it intended to bring in as partners local companies from Turkey's financial and insurance sectors, which will hold between 10% and 30% of the acquired company.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2008
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