Binyan Insurance Agencies, owned by the Migdal Insurance group, yesterday acquired 75% of the Mivtach Shamir Insurance Agency from Mivtach Shamir Holdings and Discount Bank for an overall investment of NIS 68 million. Mivtach Shamir Holdings, which owned 55% of Mivtach Shamir Insurance Agency, will receive about NIS 50 million for its share. Discount Bank, which held 20% of the insurance agency, will receive NIS 18 million.
The deal was at a company value of NIS 90 million for Mivtach Shamir Insurance Agency. Until now, the Migdal Insurance group held 25% of Mivtach Shamir Insurance Agency, and will now have 100% ownership of the company. Binyan did not acquire the company, but its assets: life insurance portfolio, subsidiaries, fixed assets, and reputation. Mivtach Shamir Insurance Agency will remain as an inactive company, whose main asset will be 12.5% of Atudot Pension Fund.
The Migdal Insurance group will merge the Mivtach Shamir assets with the assets and portfolio of the Simon & Wiesel insurance agency, which Migdal recently acquired. The merger will be implemented by setting up a new insurance agency, which will be the largest life insurance agency in Israel.
Mivtach Shamir today announced that the deal would yield it a NIS 13-14 million capital gain. The company intends to use the sales proceeds for new financial and real estate investments, as well as for investments in technology, biotechnology, and high tech companies.
Published by Israel's Business Arena on January 15, 2001