Former CEO of The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) and current CEO of Property and Building Ltd. (TASE: PTBL) Eyal Lapidot has bought 5% of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) from IDB Development. IDB Development reported to the Tel Aviv Stock Exchange this morning that Lapidot had decided to exercise the option he received last month, and to buy the shares for NIS 132 million.
Lapidot will pay 10% of the consideration in cash, and the remainder by means of a seller's loan from IDB Development carrying a 4% fixed annual rate of interest and repayable in one payment (principle and interest) five years from the loan date. The shares that Lapidot is buying will not be mortgaged to IDB Development, but the company will have a negative lien preventing Lapidot from mortgaging them to a third party.
Today's sale follows the sale of 10% of Clal Insurance by IDB Development to Mori Arkin and Yakir Gabay last month.
Following the current sale to Lapidot, IDB development holds 20.3% of Clal Insurance (15.4% of which are held through the trustee for the controlling stake in Clal Insurance, Moshe Tery). IDB Development is also invested in Clal Insurance through swap deals relating to shares amounting to 24% of the company.
IDB Development is thus exposed to changes in Clal Insurance's stock market valuation in relation to 44.3% of the company, and theoretically could find a buyer for this large slice of it. This would be through the sale of its directly held stake and through instructions to the banks with which it made the swap deals to sell the shares that were the subject of those deals.
Published by Globes, Israel business news - en.globes.co.il - on June 17, 2019
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