After the Bank of Israel blocked nonbanking credit finance company Nawi Brothers Group (TASE: NAWI) from buying Isracard (TASE: ISCD), "Globes" has learned that Delek Group Ltd. (TASE:DLEKG) controlling shareholder Yitzhak Tshuva is among those considering an investment in the credit card company. Also interested in Isracard, which is trading with a market cap of NIS 2.5 billion, is businessman Yaakov Engel.
Several months ago it looked like Harel Insurance Investments and Financial Services (TASE: HARL) was set to buy Isracard for NIS 3.3 billion but the deal was canceled following opposition from the Israel Competition Authority on concerns that information would be exchanged by the two companies. A short time afterwards, Nawi Brothers Group submitted a request to the Bank of Israel to obtain a permit to control Isracard, with a 20%-25% stake, which was below the Supervisor of Banks threshold for the core control. So Isracard has been left without a controlling core.
This situation has attracted investors to purchase shares in Isracard due to the growth of credit card companies in the credit sector alongside income from core operations. At the end of March, a private investor, whose identity has not been published, purchased about 4% of Isracard shares for about NIS 100 million.
In March, the Israel Competition Authority removed Tshuva and the Delek Group from its list of concentration entities in the economy and the list of significant real-economy corporations.
Delek Group stated, "The company does not provide information about its investment portfolio beyond reports published by the company from time to time."
Published by Globes, Israel business news - en.globes.co.il - on June 9, 2024.
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