Discount Bank has bought 20% of Harel Insurance Investments for NIS 329.5 million. The deal was based on a company value of NIS 1.6 billion – 24% above Harel Insurance’s value on the Tel Aviv Stock Exchange this morning.
Over a year after the agreement for Bank Discount’s purchase of a stake in insurance company Harel Insurance Investments was signed, the deal was completed this week. The delay was due to the lengthy procedure for obtaining the regulatory approvals required for such deals.
In October 2000, Discount Bank signed an agreement to purchase 20% of the Harel Insurance Investments group from the Hamburger and Manor families.
The deal was based on a value of NIS 1.6 billion for Harel Insurance Investments – 24% above the company’s market value as reflected by the price of its share on the Tel Aviv Stock Market this morning.
Under the terms of the agreement, two Discount Bank representatives will sit on Harel’s ten-member board of directors. Discount Bank has not yet appointed the two directors.
Published by Israel's Business Arena on 6 December, 2001