Insurance company Clal to buy credit card company Max at NIS 2.47 billion valuation
Categories: Corporate and M&A
Clal Insurance has signed a binding agreement with Max’s largest shareholder, US private equity firm Warburg Pincus, for the sale of Max at a valuation of NIS 2.47 billion, and the transaction is expected to close towards the end of the year.
The transaction, which by itself is unique in scope and complexity, is also considered precedential in the Israeli financial landscape, being the first time that a leading Israeli insurance and pension group looks to step foot into the consumer credit market by acquiring a leading credit card company, which brings forth complexities, as well as the attention of several regulators and governmental authorities.
Gornitzky is representing Warburg Pincus LLC, controlling shareholder of the Israeli credit card company Max, in the sale of Max and the sister company Hyp (operating in the payments market), led by Partners Elite Elkon and Alon Peled, senior associate Rafael S. Shafransky, associates Suzanna Flaster, Diana Barnea and Shai Landesman, together with Partner Dr. Assaf Prussak and senior associate Nir Moses (tax), Partner Yair Shiloni (securities), Partner Avner Finkelstein (antitrust), Partner Michael Ayalon and senior associate Lee Alter Kizis (labor).
Clal Insurance Enterprise Holdings Ltd., owner of the Clal group – one of the largest insurance and pension fund groups in Israel, is represented by Fischer (FBC & Co.).
Wachtell, Lipton, Rosen & Katz are acting as US counsel to Warburg Pincus.
