Sources inform “Globes” that Zur Shamir is about to acquire veteran brokerage Moritz & Tuchler through its subsidiary, IDI Israel Direct Insurance. Tel Aviv Stock Exchange-listed Zur Shamir operates in two main fields: real estate, through Adgar Investment and Development, which it fully owns, and insurance, through IDI, in which it holds 52.3%.
The acquisition of the brokerage is designed to strengthen the insurance company. In practice, most Israeli insurance companies currently manage investment portfolios, and have expanded their investments in this field. Two examples are Clal Insurance Enterprise Holdings, which recently acquired Ilanot Batucha, and Migdal Insurance, which acquired Merkazit Capital Markets a year ago, and made it the Migdal group’s main portfolio manager. Zur Shamir CEO Moshe Schneidman declined to comment on the matter.
The acquisition price has not been reported, but is probably a few million dollars to both Moritz & Tuchler controlling shareholder Yael Moritz and to Ampa, which owns 20% of the brokerage.
Zur Shamir lost NIS 1.8 million in the first quarter of 2003, compared with a NIS 1.9 million loss in the preceding quarter, and a NIS 4.6 million profit in the first quarter of 2002. The company’s profit in 2002 was NIS 14.3 million, mostly from real estate business in Belgium, Britain, Poland, and Canada.
Zur Shamir’s shareholders’ equity amounted to NIS 127 million as of the end of the first quarter, and its current market value is NIS 255 million.
Published by Globes [online] - www.globes.co.il - on June 19, 2003