Menora Mivtachim renews pursuit of Isracard

Menora Mivtachim chairman Eran Griffel and CEO Michael Kalman credit: Guy Hamui and Nati Levy
Menora Mivtachim chairman Eran Griffel and CEO Michael Kalman credit: Guy Hamui and Nati Levy

The Israeli insurance and finance firm is offering to buy a 32% controlling core in the credit card company.

Israeli insurance and finance firm Menora Mivtachim Holdings Ltd. (TASE: MMHD) has renewed its efforts to buy a controlling core in credit card company Isracard (TASE: ISCD). Last Thursday Menora Mivtachim wrote a letter to Isracard chairperson Tamar Yassur and CEO Ran Oz offering to begin negotiations to invest in the credit card company through a share allocation, which would total 32% of the company at a premium on the current market price, to be agreed in the talks.

Menora Mivtachim's latest bid comes after the Israel Competition Authority thwarted Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) in its bid to buy 100% of Isracard for NIS 3.3 billion.

Menora Mivtachim's latest bid is very different from its bid at the start of 2023 when it offered to buy 30% of Isracard at a company valuation of NIS 3.5 billion. It can be assumed that Menora Mivtachim's latest bid will be considerably lower with the credit card company currently having a market cap of NIS 2.7 billion - with the share price down 9% over the past year.

Menora Mivtachim, under CEO Michael Kalman, is banking on its ability to persuade Isracard's shareholders that it can create future value for them. Menora wrote, "Under the stable controlling core of Menora, it will be possible to continue to develop Isracard's activities and lead it, with the support of Menora, to major growth."

"Acceptance of Menorah's offer will keep Isracard as a public company and will allow its shareholders to benefit from the growth and expansion of its activities and the future extra value in Isracard's activities," the letter stated.

The letter indicates that Menorah would have no problem financing the deal - which would be close to an estimated NIS 1 billion. The company wrote it has, "The full financial means required to carry out the investment to acquire a controlling interest in Isracard." Isracard stressed the deal could be completed quickly since it believed it would not be subject to comprehensive due diligence, with Isracard's reports to the TASE providing sufficient data.

Published by Globes, Israel business news - en.globes.co.il - on September 3, 2024.

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

Menora Mivtachim chairman Eran Griffel and CEO Michael Kalman credit: Guy Hamui and Nati Levy
Menora Mivtachim chairman Eran Griffel and CEO Michael Kalman credit: Guy Hamui and Nati Levy
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