This will be a round-trip transaction inside the Clal
Group. No other changes in the Clal Insurance Group are
expected.
Clal Holdings' Insurance Transactions will lend its
subsidiary Clal Insurance NIS 74 million as part of a
transaction in which Clal Insurance will purchase 100%
of Eitan Insurance's shares. The loan is for the period
of five years, without index-linkage or interest,
against a capital note that Clal Insurance will issue
the parent company.
Clal Holdings is currently a 67% shareholder in
Eitan, and Clal Insurance will buy those shares for NIS
74 million. Clal Insurance will finance this payment
through the loan, which it will receive from the parent
company. This is essentially a round-trip transaction,
created as the result of the transaction between two
companies who each have separate legal standing.
In addition, Clal Insurance will buy Eitan shares and
bonds from the public in a tender offer at NIS 25
million. The public holds 22% of Eitan's shares. Clal
Insurance will finance the tender offer from its
shareholders' equity. Clal Insurance currently holds
shareholders' equity and reserves of NIS 200 million
greater than the Superintendent of Insurance's
requirements