Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) will distribute a NIS 180 million dividend, NIS 3.25 per share, on November 22. The ex-date for the dividend is November 7.
On Sunday, Clal Insurance closed the sale of Guard Insurance Group to a unit of Berkshire Hathaway Inc. (NYSE: BRK.A), controlled by Warren Buffet, for NIS 865 million. Clal Insurance stated that had the transaction been completed at the end of June, it would have reported a net post-tax gain of NIS 72 million. This amount will be adjusted to take into account profits at Clal US Holding since that date and an additional pre-tax gain totaling NIS 13 million, mainly from exchange rate differences.
Clal Insurance said it would use the proceeds from the sale repay NIS 230 million on the principal of a bank loan, inject capital into subsidiary Clal Finance Ltd. (Clal Insurance subsequently announced that it would inject NIS 50 million into Clal Finance), and to distribute a dividend.
Clal Insurance is traded at a market cap of NIS 2.8 billion. IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, owns the controlling 54.97% interest in the company.
Published by Globes [online], Israel business news - www.globes-online.com - on October 30, 2012
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