DS Apex Holdings Ltd. (TASE:DSAP) has closed a deal to acquire Tachlit ETF from Tachlit Investment House Ltd. at an estimated value of NIS 180 million for the ETF operations, after eight months of complicated negotiations. Based on Tachlit ETF's NIS 13.2 billion in assets under management, the price reflects 1.4% of the assets.
Tachlit's products are called index-linked notes ILN), which are similar to exchange traded funds (ETF). Tachlit ETF is Israel's second largest manager of exchange traded funds.
DS Apex will pay NIS 85.5 million for 50.01% of the ETF operations, and will receive a three-year call option on the rest.
The price of the deal will ultimately stand at NIS 280 million, comprising of the value of the activity - estimated at NIS 180 million - and additional assets (which could be negative), as well from shareholders' equity that Tachlit was compelled to freeze at the order of the regulator.
Israel Discount Bank (TASE: DSCT) owns 20% of the operations of Tachlit Investment House. Two companies owned by Michael Davis, Synergetica Ltd. and MDG Ltd. own the remaining 80% of Tachlit's ETF operations. Tachlit operates through eight subsidiaries, which is the main reason why the negotiations were so protracted and so complicated. Tachlit Investment House's portfolio management company is not part of the deal.
DS Apex's share fell 1.8% to NIS 23.15, giving a market cap of NIS 904 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2010
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