DS Apex Holdings Ltd. (TASE:DSAP) will acquire the 45% stake in Index Sal Ltd. owned by Brack Capital Ltd., controlled by chairman and CEO Eyal Bakshi and Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG), for NIS 36 million, reflecting a company value of NIS 80 million.
Sources inform ''Globes'' that a clause in the agreement with Tachlit Investment House Ltd. controlling shareholder Michael Davis allows DS Apex to merge Tachlit with Index Sal without Davis's consent.
Index Sal will also repay Brack Capital for a NIS 20 million owners' loan. Index Sal CEO Uri Ben-Dov has exercised his option to acquire 10% of the company, which he is selling to DS Apex for NIS 8 million. DS Apex already owns 45% of Index Sal; the deals with Ben-Dov and Brack Capital give it full ownership.
The formal closing of the deal depends on approval by the Antitrust Authority of the recent Tachlit deal. In this deal, DS Apex acquired the 50.1% controlling interest in Tachlit from Israel Discount Bank (TASE: DSCT) and Davis. Tachlit ETF is Israel's second largest manager of exchange traded funds, with NIS 14.2 billion in assets under management.
The sources added that several Tachlit employees, including Davis-appointed CEO David Alalouf, own 12.9% of the company altogether, worth NIS 23 million. Davis owns 37%.
Index Sal, Israel's fifth largest ETF management company, has NIS 5.9 billion in assets under management. The acquisition will turn DS Apex into Israel's largest ETF management company, with NIS 20 billion in assets under management and a 34% market share.
BRM Capital owns the controlling interest in DS Apex, and BRM chairman Eli Barkat serves as DS Apex chairman.
Following the acquisition, DS Apex will restructure. DS Apex, under co-CEOs Ido Neuberger and Victor Shimrich, will own underwriting, brokerage, and nostro management companies, and an M&A unit. Subsidiary DS, under Yadin Antebi, will manage assets in two arms: long-term savings, including Yuvalim Pension Fund, provident funds, and insurance operations that will be set up and will hire agents; and short-term savings, including portfolio management, ETFs, and mutual funds.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2011
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