Delek Group joins bidding for Isracard

Isracard CEO Ran Oz, Delek Group controlling shareholder Yitzhak Tshuva  credit: Tami Bar-Shay, Einat Levron
Isracard CEO Ran Oz, Delek Group controlling shareholder Yitzhak Tshuva credit: Tami Bar-Shay, Einat Levron

Yitzhak Tshuva's company proposes to buy a 37% stake at a valuation of NIS 3.36 billion. Menorah Mivtachim and Bank of Jerusalem are also in the race.

The shareholders in credit card company Isracard were meant to vote on the bid by insurance company Menorah Mivtachim to take it over at a valuation of NIS 3.1 billion. At the last minute, however, Yitzhak Tshuva’s Delek Group has made a bid of its own, valuing Isracard at NIS 3.36 billion, while Bank of Jerusalem has also submitted a bid, at a valuation of NIS 3.2-3.4 billion, for a merger through a share swap. "Globes" reported that Tshuva was eyeing Isracard last June.

Isracard stated that it had received an offer from Bank of Jerusalem, and also from Delek Group, to buy control of the company. "The offers will be sent for examination by the board of directors, together with the offer by Menorah," the company said.

Menorah Mivtachim seeks to take over Isracard through an allocation of shares that will give it a 31% stake in the company, in a deal that values Isracard at NIS 3.1 billion. Delek Group is offering to buy Isracard shares in a private placement that will give it a 37% stake, at a price that values Isracard at NIS 3.36 billion, 11% higher than Isracard’s closing price yesterday, and 15% higher than the average share price in the past 30 sessions.

Like Menorah Mivtachim and Bank of Jerusalem, Delek Group is trying to tempt Isracard’s shareholders with a dividend distribution. Delek Group proposes a dividend of NIS 1.3 billion to the shareholders before execution of the takeover deal. Delek Group says that it is prepared to enter into a binding investment agreement identical to the one that exists between Isracard and Menorah Mivtachim "within a few days." Delek Group believes that there is a high probability that it will receive the necessary regulatory approvals for the deal.

Bank of Jerusalem proposes merger

Bank of Jerusalem has made an offer different from those of Delek Group and Menorah Mivtachim. The bank seeks to buy 100% of the shares in Isracard, at a valuation of NIS 3.2-3.4 billion. It proposes a share swap, giving Isracard shareholders shares in Bank of Jerusalem. Isracard will become a private company that will be merged into the bank. The Isracard shareholders will hold 58% of the merged company, but the Shoval family, which holds the controlling interest in the bank, will continue to control it under the regulatory permit that it possesses, even if its holding is substantially diluted.

Bank of Jerusalem’s market cap is NIS 1.2 billion, a little over a third of that of Isracard (NIS 3 billion). It believes that it has a better chance than Menorah Mivtachim of obtaining approval from the regulators for completing a deal. It stresses that it is a publicly traded bank, with a stable controlling core which will continue after the merger, and is supervised by the Bank of Israel. Bank of Jerusalem proposes a special dividend distribution of NIS 950-1,050 million to Isracard shareholders from Isracard’s cash, following which it will inject an unspecified amount of capital into the company so that it meets the required capital ratios.

Bank of Jerusalem claims that a merger with Isracard will generate competition in both the banking and credit card markets, and that this will ultimately percolate through to consumers’ pockets. "In our view, our detailed offer, which has been approved by the Bank of Jerusalem board, represents a better offer than the other one that Isracard has received, and will carry value for its shareholders," Bank of Jerusalem CEO Yair Kaplan said.

Published by Globes, Israel business news - en.globes.co.il - on December 12, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Isracard CEO Ran Oz, Delek Group controlling shareholder Yitzhak Tshuva  credit: Tami Bar-Shay, Einat Levron
Isracard CEO Ran Oz, Delek Group controlling shareholder Yitzhak Tshuva credit: Tami Bar-Shay, Einat Levron
Unframe founders credit: Yossi Yarom Israeli AI enterprise platform co Unframe raises $50m

Unframe’s turnkey AI solutions enable companies to solve any enterprise AI use case at scale with fully functional, customized AI solutions for businesses in a matter of hours, rather than months.

Combatica credit: Combatica Combatica launches next-gen VR AI training platform

The Israeli company's virtual reality platform includes 50 AI generated scenarios, seven maps and even situations for operating night vision.

Shekel credit: Shutterstock Vladirina 32 Shekel volatility after US tariffs announcement

The shekel is weakening sharply against the euro, which is gaining following the unveiling of Donald Trump's tariffs plan.

Minister of Finance Bezalel Smotrich credit: Noam Moskovitz Knesset Spokesperson Treasury assesses potential damage to Israel's US exports

Israel will be charged a higher tariff on its exports to the US - its biggest export customer - than Turkey and the UAE.

Iranian flag credit: Shutterstock Why inflation haunts Iran

With a month-on-month increase of 3.3% and an annual rate of 37.1%, inflation reflects the struggles of millions of Iranians.

APM merges with lawyers from Doron, Tikotzky Kantor, Gutman credit: Eyal Merilos APM merges with 12 lawyers from Doron, Tikotzky Kantor, Gutman

With the addition of these 12 lawyers, Amit Pollak Matalon & Co. will now have 135 lawyers.

US President Donald Trump credit: Reuters Sipa USA Israel on list as Trump unveils tariffs

Relatively low reciprocal tariffs will be imposed on Israeli goods sold in the US.

Deflated unicorn credit: Shutterstock Big Tech 50 reports more huge falls in startup valuations

Israeli R&D partnership Big Tech 50 reports that an investment of $2 million in Orcam made in 2021, shrank to just $31,000 at the end of 2024.

NextFerm technologies based on yeast credit: NextFerm Food-tech co NextFerm suspends operations

The company, which produces food ingredients in yeast without genetic engineering, cannot pay its debts and is seeking a buyer.

Minister of Finance Bezalel Smotrich credit: Shlomi Yosef OECD sees recovery in growth but high inflation

The OECD Israel Economic Survey 2025 recommends that the Israeli government take several restraining measures, in order to exit the economic storm created by the war.

Dano Ben-Hur credit: Dror Sithakol Statisticians contradict BoI on impact of housing finance deals

The Central Bureau of Statistics insists the impact of 20/80 buy now pay later financing deals on the real estate market and housing prices is minimal.

Governor of the Bank of Israel Amir Yaron  credit: Government Press Office Debt fears top Bank of Israel's concerns

Most unusually, Governor of the Bank of Israel Amir Yaron's press conference last week did not focus on inflation and the impending interest rate decision.

US President Donald Trump  credit: Reuters/Leah Millis Israel moves to avoid Trump's tariffs axe

Minister of Finance Bezalel Smotrich has signed an order canceling all tariffs on imports from the US. The impact will mostly be on agricultural produce.

Forbes Rich List credit: Shutterstock Maslowski Marcin Wiz founders ranked in Forbes 2025 Rich List

There are a few dozen Israelis listed in the 2025 Forbes Real-Time Billionaires List including Wiz founders Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak.

SatixFy CEO Nir Barkan credit: Ariel Barkan Canada's MDA Space to buy Israeli satcom co SatixFy

MDA Space will pay $269 million for the Israeli company, including taking on a $76 million debt and a 75% premium on SatixFy's closing price on Nasdaq yesterday.

Raising dollars credit: Shutterstock Israeli startups raised over $1b in March

Israeli privately-held tech companies have raised $2.1 billion in the first three months of 2025, according to IVC-LeumiTech, up 24% from the corresponding quarter of 2024.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018