Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) unit Clal Finance today reported it has signed an agreement to sell its 51.3% stake in Titanium Asset Management Corp., the US investment management arm of TAMCO Holdings LLC for $18.5 million. According to the announcement, the procedures needed to complete the deal began on the signing of the agreement. Payment of the $18.5 million and transfer of shares is expected to take place in the coming days.
In November 2010, Clal received an offer to sell Titanium at a company value of $40 million but rejected it on the grounds that it considered a better price could be achieved.
Clal Finance acquired Titanium shortly after its public offering in May 2007. At the time Titanium was a stock market shell and shortly after wards it raised $120 million on London's Alternative Investment Market (AIM) with $60.6 million coming from Clal Finance itself, and the balance from international institutional investors.
Clal Finance said it would record a net loss of NIS 30 million in 2012 on the sale.
Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2012
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