Credit card co ICC-CAL seeks NIS 4b valuation

By Investor Empires On Jan 24, 2025

Investment bank JP Morgan was previously appointed Israeli Discount Bank (level: I shut up) and First International Bank of Israel (level:FTIN1; FTIN5) to promote the sale of Israeli Credit Cards (ICC) – CAL. A bidding war for control of the rival credit card company (TASE: ISCD), which Delek Group (TASE: DLEKG) appears to have won, has boosted interest in ICC-CAL as an attractive asset.

ICC-CAL management, headed by CEO Levi Halevy, recently undertook a presentation tour in London, where it became clear that there was a high level of interest in the Israeli credit card company. The Israelis were surprised by how familiar international investment bodies were with ICC-CAL, and it was clear that some foreign institutions had arrived after extensive preparatory work, which is evidence of their seriousness.

ICC-CAL’s owners plan to open an “information room” in the near future, to allow access to additional parties that may be interested in acquiring the credit card company, while targeting prominent players in the finance and retail industries. In accordance with the “Strom Law” that forced banks to separate from credit card companies and newer legislation passed by the Knesset last year, the deadline for the sale of ICC-CAL has been extended until May 2027. If the sale does not go through, Discount (which owns 72 % of ICC-CAL shares) from the IPO promotion on the Tel Aviv Stock Exchange (TASE) until May 2028.

Globes has learned that the valuation sought by ICC-CAL holders could reach NIS 4 billion – higher than the NIS 3.56 billion valuation achieved in the sale of a controlling stake in Isracard to Delek Group, even though Isracard is the largest credit card in Israel. The company has a market share of 48%. The main reasons for this high rating are the high profitability of ICC-CAL in the credit card industry, as well as the technologies it has developed in this field, which allow innovative credit card operations.

Among the Israeli companies expected to show interest in the takeover, along with foreign investors, is insurance group Menora Mivtachim (TASE: MMHD), which recently came close to taking control of Isracard, but ultimately succumbed to a higher bid from Delek. Menora may join foreign investment funds or international investment entities and become part of a controlling interest in ICC-CAL. Menorah Mivtashem declined to comment. Israeli airline El Al (TSE: ELAL), which has also bid for Isracard, could also join the race to buy ICC-CAL.

Published by Globes, Israel Business News – en.globes.co.il – on January 22, 2025.