Clal Insurance completes equity offering; Alrov slightly diluted

Alfred Akirov  credit: Eyal Izhar

Clal Insurance Enterprises Holdings Ltd. denied that the offering was designed to thwart a takeover by Alfred Akirov's Alrov.

After two long, tense days, yesterday evening Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) completed its equity offering, raising NIS 493 million.

Real Estate company Alrov, controlled by Alfred Akirov, which was the main focus of interest in the offering, participated in it, to the tune of NIS 60 million. Despite this, Alrov's stake in Clal Insurance, which stood at 15% before the offering, will be slightly diluted.

Clal Insurance began the offering, which was led by Discount Capital, with the intention of giving a 7% discount on the market price of its shares, but, in the end, the offering closed at NIS 78.95 per share, slightly above yesterday's closing price of NIS 78.80.

Demand for the offering totaled NIS 750 million.

As mentioned, Alrov was the center of attention in the offering, after having attempted to have it postponed, for fear that it was designed to dilute its holdings in Clal Insurance as part of an attempt to prevent it from taking over the company. Clal Insurance denied these claims all along, and explained that the offering was intended to raise capital to enable it to continue developing its business.

Published by Globes, Israel business news - en.globes.co.il - on January 13, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Alfred Akirov  credit: Eyal Izhar
Alfred Akirov credit: Eyal Izhar
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