Proceeds will be used to buy smaller investment houses.
Shiraz Investments Ltd. has invested NIS 60 million into Altshuler Shaham Ltd., reportedly for a 20% stake in the investment house. On this basis, the deal gives Altshuler Shaham a company value of NIS 300 million, after money.
Altshuler Shaham, owned and run by Gilad Altshuler and Ran Shaham, has been in talks with several parties in recent months in an effort to find partner or make a merger. It will use proceeds to obtain leveraged bank loans of an equal amount. The company will use the NIS 120 million obtained to buy smaller investment houses that have NIS 4-5 billion in assets under management. It could also expand through share-swap deals, such as the deal with Perfect YNE Capital Markets Ltd., or other creative measures.
Altshuler Shaham said, "The time is ripe to strengthen the company through mergers and acquisitions. We're in talks with several parties, with the goal of becoming one of Israel's leading investment houses. When these negotiations reach fruition, we will announce it properly."
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2009
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