Buying battle Isracard (TASE: ISCD) has moved higher. after Menorah Mivtashem Holdings Ltd (level: Smoothed) renewed its bid 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, and there are now two other potential bidders considering making moves. The first is businessman Bani Al-Ajem, who is considering 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.
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Globes learned that Alagim (71 years old), who has lived in the United States since the 1980s, had tried in the past to buy the controlling core of Bezeq but lost to Haim Saban. Alagim made his fortune in the 1990s by founding Packard Bell, one of the world’s largest computer manufacturers, after which he invested heavily in real estate and telecommunications.
Another model that may emerge will 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 are already collaborating with credit card companies, allowing club members to obtain a card that provides benefits to encourage customers to continue shopping with them.
Companies with such extensive retail activities and credit card cooperation include FOX, SuperPharm, El Al and Shufersal. A number of unnamed major retailers are currently examining the possibility of buying control of Isracard together. Such a partnership, in their estimation, would receive the green light more quickly from regulators such as the Israel Competition Authority, which a year ago rejected the takeover move initiated by Harel Insurance and Finance.
There are currently two offers on the table for Isracard, which has a market capitalization of NIS 2.7 billion, after its share price fell 11% over the past year. Menora Mivtashem has offered to start negotiations to invest in the credit card company through an allotment of shares, which will total 32% of the company at a premium to the current market price, which will be agreed upon in the talks. WeSure, for its part, has offered to buy a controlling stake of 30%.
Published by Globes, Israel Business News – en.globes.co.il – on September 26, 2024.
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