IBI Investment House Ltd. (TASE:IBI) will acquire 20% of Camalia Capital Market Ltd. for NIS 5.5 million, and has an option to buy an additional 15%.
The main objective of the acquisition is to give IBI a significant role in trading in securities on international stock markets.
IBI currently has NIS 20 billion in assets under management. IBI Stock Market Services chairman Ido Kook said that the acquisition marks the company's plan to expand its brokerage business to more foreign markets.
Camalia Capital Market provides advanced brokerage services in foreign securities to Israeli and foreign investment institutions. It is one of the prominent trading rooms in Israel in the sector, offering trading in a wide range of securities on over 75 stock exchanges worldwide.
Camalia servers as the Israeli arm of CA Cheuvreux, the brokerage unit of French bank's Credit Agricole SA (Euronext: ACA).
Camalia vice chairman Kobi Navon said, "The investment by IBI, one of Israel's most respectable investment houses, is a stamp of success. It's important to point out that the proceeds from the investment will stay in the company to expand its operations in areas related to its trading business."
IBI Investment House's share price was unchanged by midday to day at NIS 38.92, giving a market cap of NIS 502 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 24, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010