Excellence Investments Ltd. (TASE: EXCE) has completed the purchase of the mutual funds, exchange traded funds (ETFs), and portfolio management businesses of Prisma. Excellence will now manage more than NIS 45 billion in assets.
According to terms of the deal, Prisma Mutual Funds will be acquired in exchange for a stake of 45% in Excellence Mutual Funds, and Excellence will also take over NIS 130 million of Prisma's bank debt. Prisma's mutual funds currently manage NIS 9.7 million.
Prisma's ETFs will be bought by KSM, the ETF company of Excellence, for NIS 7 million plus the equity in Prisma's ETF which it terms basket certificates - arm. That unit manages assets of NIS 450 million. As of the end of September, the unit had equity of NIS 38.74 million, which would value the deal at NIS 45.74 million, about 10.16% of assets.
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2009
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