Clal Insurance Enterprises Holdings (TASE: CLIS) reported today that it has received final approvals for the acquisition of credit card company Max from investment fund Warburg Pincus and that the deal has been completed. In the deal Clal is buying all of Max's shares for NIS 2.47 billion, and it will operate as part of the insurance and finance company.
Of the valuation put on Max, Clal will pay NIS 1.54 billion net and assume its debt of NIS 800 million. Of this amount Clal will immediately pay NIS 790 million cash and will transfer to Max shareholders (Warburg Pincus, Menora Mivtachim (MMHD), and Allied) in exchange for shares worth NIS 380 million allocated on the date of the deal's completion. A solution must be found for Clal fund members who own 9% of Max's shares.
Clal Insurance CEO Yoram Naveh said, "We are proud of the completion of the transaction. Clal Insurance and Finance is the pioneer in leading the next level of the consumer credit market. For about a year, we have been working with our partners on this complex deal, and its completion today is a very significant milestone for the group. I have no doubt that the combination of Max as part of a total insurance and financial group will increase competition in the consumer credit field, for the benefit of the economy and for the benefit of the group."
Published by Globes, Israel business news - en.globes.co.il - on March 27, 2023.
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