Magen Zahav is a very small pension fund. The price for the fund will reportedly be NIS 8-12 million.
Meitav Investment and Securities Advisers Ltd. and Histadrut old age homes chain Mishan have submitted a bid for the new Magen Zahav pension fund (established after January 1, 1995). Under the bid, Meitav will owns 70% of Magen Zahav and Mishan 9.99% (the proportion that does not require Ministry of Finance approval), while the rest will be remain under the ownership of the old Magen Zahav pension fund (established before January 1, 1995).
Magen Zahav is a very small pension fund. It had 1,951 members, as of December 2002, of whom 1,603 were active. Annual receipts totaled NIS 8.5 million, and its assets were NIS 42 million. The price for the fund will reportedly be NIS 8-12 million. Other companies, including Ayalon Insurance (TASE:AYAL), are also bidding for Magen Zahav.
A senior Ministry of Finance official said he was aware that Mishan - controlled by the Histadrut (General Federation of Labor in Israel) - was a party in the consortium bidding for Magen Zahav, and that suitable action would be taken, if necessary. Meitav Securities business development manager Avner Stepak views entry into the pension market as a strategic move that will complement the company's existing capital market activities.
Published by Globes [online] - www.globes.co.il - on September 19, 2004