Delek Group (TASE: DELKG), controlled by Yitzhak Tshuva and managed by CEO Idan Wallace, is on the cusp of taking control of Israeli credit card company Isracard (TASE: ISCD). The battle between Delek, Menora Mivtashem (TASE: MMHD) and Jerusalem Bank (TASE: JBNK) over Israel’s largest credit card company is now in the final stage.
Delek is in first place after slightly improving its offer and the Isracard board commented this morning, “Based on all the terms and aspects of the transaction, and taking into account its financial, legal and regulatory aspects, as well as the prospects for completion within a reasonable period of time, this (Delek) is the deal.” “Favorites”.
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Isracard’s board of directors will inform Menora Mivtachim that it will cancel the agreement signed with it in October to sell a controlling stake at a company valuation of NIS 3.15 billion.
Earlier this month, offers were received from Delek and Al-Quds Bank. Delek later improved the offer to a company valuation of NIS 3.56 billion, and pointed to the penalty that Isracard was supposed to pay to Minora for canceling the investment agreement. Bank of Jerusalem submitted an updated offer this week to merge Isracard into it at a valuation of between NIS 3.8-4.2 billion for the combined company as a whole (in a share swap deal).
Not the end of the story
However, this may not be the end of the story yet, and Minora may be able to submit another improved offer in the coming days, which would force the Isracard board to reconsider and consider what the preferred offer is. Unless Minora does so, Delek appears to have paved the way for a takeover of the credit company.
The Isracard Board of Directors explains in its announcement to investors this morning that “even after studying the financial terms of the Delek Group offer and the investment agreement with Menora, including the cancellation fee for Menora (a penalty to Menora of 4% of the investment amount), the ownership percentage and other parameters, Delek Group’s offer reflects greater value for the company’s shareholders.”
The Isracard Board of Directors adds: “With regard to regulatory issues, the prospects for the feasibility of completing the transaction, the reputation and experience of the bidders in the Israeli capital market and other key conditions, the Company’s Board of Directors believes that the Delek Group’s offer and the investment agreement with Minora are equivalent to each other.”
Published by Globes, Israel Business News – en.globes.co.il – on December 31, 2024
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