Friday, September 22, 2017

Huabang Financial to acquire Israel’s Clal Insurance

Hong Kong-listed Huabang Financial Holdings is buying a controlling stake in Clal Insurance, an Israeli insurance and financial firm, for about US$1.36 billion.

The Chinese public company will buy the stake from IDB Development Corporation at a value close to that of Clal Insurance’s shareholders’ equity, which is about NIS4.88 billion (US$1.36 billion).

IDB has notified the Tel Aviv Stock Exchange that it has signed an initial, non-binding memorandum of understanding with Huabang for the sale of the controlling stake.

The initial agreement is for 60 days exclusivity in examining Clal Insurance and there will be no penalties for either side if no deal is achieved.

IDB is required to sell its stake under Israeli regulations, which prohibit holding companies from owning both financial and non-financial businesses.

 

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