Psagot Investment House Ltd. has acquired Meitav Investment House Ltd. unit Meitav Index Linked Certificates Ltd. for NIS 150 million. The deal was made at a company value of NIS 65 million for the unit, plus NIS 85 million in its equity.
Meitav Index Linked Certificates has NIS 10.2 billion in ETF assets under management. The acquisition will double the assets managed by Psagot Exchange Traded Notes Ltd., which controls 30% of the market. The acquisition is subject to regulatory approval.
Since Meitav acquired the unit two years ago, its assets under management have grown by 55%, prompting Meitav to ask NIS 200 million for the business. Psagot bid against Menorah Mivtachim Holdings Ltd. (TASE: MORA) for the unit.
Meitav sold the unit as part of its pending merger with DS Apex Holdings Ltd. (TASE:DSAP). Antitrust Authority director general David Gilo ordered Meitav to sell its exchange traded funds business by April as part of his approval of the merger, because DS Apex unit Tachlit Exchange Traded Funds Ltd. controls 30% of the market, while Meitav's unit controls 14%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2013
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