Clal Insurance receives approval to complete acquisition of credit company Max
Categories: Corporate and M&A
Global investment fund Warburg Pincus has sold the credit card company Max to Clal Insurance Enterprises Holdings.
Gornitzky advised Warburg Pincus on the deal, which sees Clal buying all of Max’s shares for NIS 2.47 billion, which it will operate as part of the insurance and finance company.
Of the valuation put on Max, Clal will pay NIS 1.54 billion net and assume its debt of NIS 800 million.
Of this amount Clal will immediately pay NIS 790 million cash and will transfer to Max shareholders (Warburg Pincus, Menora Mivtachim (MMHD), and Allied) in exchange for shares worth NIS 380 million allocated on the date of the deal’s completion. A solution must be found for Clal fund members who own 9% of Max’s shares.
