Menorah Holdings (TASE:MORA1;MORA5) today won the tender to acquire control of the Mivtachim Pension Fund, after putting in a high bid of NIS 710 million.
The underbidder was a group comprising Israel Phoenix Assurance (TASE:PHOE1;PHOE5) and Shamrock Holdings; third highest was the Harel Insurance Investments (TASE:HARL1;HARL5) - AIG group.
Five bids were made for control of Mivtachim. An NIS 350 million offer made by a group comprising Ayalon Holdings Ltd., Delek Investments and Properties, and SCP Private Equity Partners came in fourth place, disqualifying the group from continuing in the bidding process.
The pricing process took place in Mivtachim's information room in Tel Aviv's Amot Mishpat House. Preliminary estimates put a NIS 500 million price tag on Mivtachim.
When the envelopes were opened, Menorah Insurance's initial bid was NIS 610 million, but it increased its bid by NIS 100 million, and won the tender.
Mivtachim Pension Fund is considered the plum prize among pension fund tenders, as it represents a 50% market share. The other funds will now try -- and perhaps succeed -- in getting a part of that share, but Mivtachim is so vast that even at half its size, it would still have 25% of the market. This sizable chunk would still be enough to keep it in first place.
Up until now, Menorah Insurance was Israel's fifth largest insurance company, whose net profit for the first half of 2004 was NIS 116.2 million, 7% lower than in the corresponding period last year.
Published by Globes [online] - www.globes.co.il - on Thursday, September 02, 2004