Migdal will pay Mivtah Shamir Finances and Discount Bank NIS 90 million for the remaining 75% of Mivtah Shamir Insurance.
Migdal Insurance will merge the Simon & Wiesel and Mivtah Shamir insurance agencies, which it has acquired, into one company, which will be the largest insurance agency in Israel. The manager of Mivtah Shamir’s insurance business will transfer to the Migdal group, and will be appointed as active chairman of the unified company.
Binyan, a wholly-owned Migdal subsidiary, which up until now held 25% of Mivtah Shamir Insurance, on Thursday acquired the holdings of Mivtah Shamir Finances and Discount Bank in Mivtah Shamir’s insurance business for NIS 90 million. The deal had two parts:
- Migdal purchased Mivtah Shamir Finances’ 55.1% holdings in Mivtah Shamir Insurance for NIS 66 million.
- Migdal purchased Discount Bank’s 19.9% holdings in Mivtah Shamir Insurance for NIS 24 million.
The transaction does not include the Mivtah Shamir pension funds. It will yield Mivtah Shamir Finances a NIS 14 million capital gain. Discount Bank says that it will derive a “very handsome” capital gain, but did not disclose the amount.
The merged insurance agency had a combined turnover this year of NIS 900 million and commission revenues of NIS 40 million. Simon & Wiesel and Mivtah Shamir are the two largest insurance agencies in Israel for selling pension insurance of all kinds, mostly Migdal policies.
Published by Israel's Business Arena on October 2, 2000