The Phoenix Holdings exploited the drop in Isracard’s share price after the Competition Authority announced opposition to Harel acquiring the credit card company.
On Tuesday this week, Israel’s largest insurance company, The Phoenix Holdings (TASE: PHOE) bought shares in credit card company Isracard (TASE: ISCD) at a “discount” of 10%, to the tune of NIS 15.3 million, raising its stake in Isracard to 5.5% and making it a party at interest in the company. The Phoenix’s stake in Isracard is currently worth NIS 137 million.
Isracard’s share price fell this week when the Competition Authority announced that it was considering objecting to the sale of Isracard to Harel Insurance Investments and Financial Services (TASE: HARL), a major competitor of The Phoenix.
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The Phoenix is the greatest beneficiary of the Competition Authority’s opposition to the Harel-Isracard deal, as it will now be able to try to make its own bid for the company, or to revive its plan for collaboration with it of a year ago. The two companies even signed a memorandum of understanding, but then Isracard decided that it would be sold to Harel for NIS 3.3 billion. Menora Mivtachim (TASE: MNMO) also tried its hand, with an offer for 30% of Isracard. At the time, The Phoenix decided to sue Isracard for acting in bad faith and breach of contract, but collaboration with it is now back on the cards.
Published by Globes, Israel business news – en.globes.co.il – on January 25, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
The Phoenix Holdings CEO Eyal Ben Simon credit: PR Inbal Marmary