The battle to buy Isracard (TASE: ISCD) has moved up a gear. After Menora Mivtachim Holdings Ltd. (TASE: MMHD) renewed its offer earlier this month to buy control of the credit card company, after which WeSure Global Tech (TASE: WESR), which owns insurance company Ayalon, entered the race, there are now two more potential bidders considering making moves. The first is businessman Beny Alagem, who is mulling buying control of Isracard and the second is an attempt to form a large Israeli retail group based on a cooperative model, which would buy the credit card company.
"Globes" has learned that Alagem (71), who has lived in the US since the 1980s, and in the past has tried to buy the controlling core of Bezeq but lost to Haim Saban. Alagem made his money in the 1990s by founding Packard Bell, one of the biggest computer manufacturers in the world, and afterwards invested heavily in real estate and telecommunications.
Another model that may emerge would be innovative in the local market. A number of large retailers could join together in a partnership that would buy Isracard. Retail giants in various fields already have collaborations with credit card companies, allowing club members to receive a card that provides benefits to encourage customers to continue shopping with them.
Companies with such extensive retail activities and credit card collaborations include FOX, SuperPharm, El Al and Shufersal. A number of unnamed large retailers are currently examining the possibility of buying together control of Isracard. Such a partnership, in their estimation, would receive a green light more quickly from the regulators like the Israel Competition Authority, which a year ago rejected the takeover move initiated by the Harel insurance and finance company.
There are currently two offers on the table for Isracard, which has a market cap of NIS 2.7 billion, after its share price has fallen 11% over the past year. Menora Mivtachim has offered 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. WeSure for its part has offered to buy a 30% controlling stake.
Published by Globes, Israel business news - en.globes.co.il - on September 26, 2024.
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