Bituach Haklai acknowledges it is trying to bring in a strategic investor.
Migdal Insurance and Financial Holdings Ltd. (TASE:MGDL) is considering the acquisition of Bituach Haklai Central Cooperative Society Ltd., the mutual agricultural insurance fund, which is owned by 279 kibbutzim, moshavim and cooperatives in the agricultural sector.
Migdal declined to comment on the report.
Bituach Haklai Central Cooperative Society chairman Doron Set said, "As the owners of Bituach Haklai we are taking a number of actions to adapt the company and strengthen it in line with market demands and the regulatory requirements of the Ministry of Finance and the Supervisor of Insurance Companies, as well as insurance market developments for the benefit of our owners - the kibbutzim. As part of these actions we are examining brining in a strategic investor."
Set replaced Amos Epstein as chairman last month. At the same time Bituach Haklai's shareholders made structural changes of ownership to the cooperative association, so that the company would have only six controlling owners instead of all 279 owners. The aim of this is to make it easier to bring in a strategic investor.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2009
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