First International Bank of Israel (TASE: FTIN1;FTIN5) has reached an agreement with the two non-profit organizations affiliated with Histadrut Poalei Agudat Israel to acquire their joint 22.56% holding in Bank Poalei Agudat Israel Ltd. (Bank PAGI) for NIS 100 million. First International Bank currently owns 68.7% of Bank PAGI.
First International Bank also plans to make an offer to purchase for the remaining 8.74% of Bank PAGI held by other parties, which will give First International Bank full ownership of the bank. First International Bank will spend NIS 139 million altogether for Bank PAGI, reflecting a multiple of 1.12 on its capital.
First International Bank will ask the court to exercise an offer to purchase in which it will offer the remaining investors NIS 0.87 per share for Bank PAGI. The offer to purchase is subject to First International Bank obtaining 95% of Bank PAGI's shares.
In the notice to the Tel Aviv Stock Exchange (TASE), First International Bank said that Bank PAGI's character and focus on the haredi (ultra-orthodox) community would continue after the acquisition is carried out.
First International Bank's share fell 1.9% by early afternoon to NIS 62.74.
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2010
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