The board of directors of DS Apex Holdings Ltd. (TASE:DSAP) yesterday approved in principle the merger agreement with Meitav Investment House Ltd. As "Globes" reported yesterday, the board of both companies met yesterday to discuss the merger.
DS Apex is controlled by Eli Barkat. Meitav is owned by the Stepak family and Shlomo Simanovsky, with a 50.1% stake, Direct Insurance - Financial Investments Ltd. (TASE: DIFI) with 28.5%, and B. Gaon Holdings Ltd. (TASE: GAON), with 21.4%.
In today's notice to the Tel Aviv Stock Exchange (TASE), DS Apex says that the merger will be carried out by a share swap. Sources inform ''Globes'' that the value of the merged company will exceed NIS 1.5 billion.
According to today's notice, DS Apex will distribute a dividend of NIS 187.5 million (NIS 5.30 per share) reducing its valuation, after which it will merge with Meitav. The Stepak family, through Maya Holdings (Yaelim) Ltd., will acquire 2.8 million shares in Meitav at NIS 22.25 per share from BRM Capital unit BRM Finance Ltd., for a total of NIS 62.4 million. When the deal is complete, the Stepak family and BRM will each own 28.64% of the merged company.
In a separate notice to the TASE, Gaon Holdings said that, simultaneously with Meitav's negotiations with DS Apex, it was in talks to sell its stake to the Stepak family, which currently owns 35% of Meitav. These talks are subject to the completion of the Meitav-DS Apex merger.
The merged company will have NIS 104.3 billion in assets under management, making it Israel's second largest investment house, after Psagot Investment House Ltd.. It will have NIS 36.2 billion managed in provident funds, NIS 26.1 billion managed in exchange traded funds, and NIS 17.1 billion managed in investment portfolios.
DS Apex's share price jumped 24.6% in early trading on the TASE today to NIS 17.62, giving a market cap of NIS 670 million. Gaon Holding's share price was unchanged at NIS 0.79, giving a market cap of NIS 88 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 20, 2012
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