Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) is taking steps to consolidate all its provident and advanced training funds business under Migdal Insurance, after removing the bulk of this business from the company's investment house, Migdal Capital Markets.
Midgal has filed a request with the Tel Aviv District Court to distribute a dividend in kind, as part of the consolidation all its provident funds business under Makefet Provident and Pension Funds Ltd. Migdal plans to carry out the consolidation by the end of the year.
Migdal wants court permission to distribute all of its 100% holding in Migdal Capital Markets as a dividend in kind amounting to an estimated NIS 595 million. In a related step, Migdal Capital Markets will distribute all of its 100% holding in Migdal Platinum Provident Fund as a dividend in kind worth NIS 101 million. Since the companies in question are wholly-owned subsidiaries, the measures are essentially technical.
The main change relates to the transfer of Israel's largest advanced training fund manager, Kahal Employees Supplementary Training Fund, to Migdal. Migdal has NIS 13.2 billion in assets under management, of which Kahal has NIS 7.94 billion in assets under management. In addition, Makafet manages Israel's second largest pension fund, New Makefet, which has NIS 19.7 billion in assets under management.
When the measures are completed, Migdal Capital Markets will only manage short-term financial and savings products.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2010
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