Kardan's Milgam City Services will buy Leumi Check based on a company value of NIS 5 million.
Sources inform ''Globes'' that Leumi Card Ltd. is in talks to sell check cashing and payment guarantee firm Leumi Check Ltd. to Kardan NV (TASE: KRNV;AEX:KARD) unit Milgam City Services Ltd. The sale price will be based on a company value of NIS 5 million for Leumi Check. Leumi Card decided to close Leumi Check's activity because it is losing money.
Kardan said in response, "As a public company, we do not comment on rumors and speculation. If and when we have something to report, we'll report it."
Kardan subsidiary Tahal Group International BV unit Tahal Group Assets BV owns 80.56% of Milgam, whose core business is collecting debts of local authorities in Israel.
Bank Leumi (TASE: LUMI) owns 80% of Leumi Card and Azrieli Group Ltd. (TASE: AZRG) owns 20%.
Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2010
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