The fight over the planned IPO of Clal Insurance shares is heating up ahead of the move that is expected to be launched on Wednesday morning. The Alrov real estate company, controlled by businessman Alfred Akirov, this evening (Tuesday) sent another letter to Clal’s board of directors in which it offers an additional outline for postponing the issue, and even offers to purchase all the shares offered for the issue, at a higher rate than the Capital Market Authority.
Alrov currently holds 15% of Clal’s shares, the maximum rate allowed by the Capital Market Authority, and is the largest shareholder in the company. The company has requested a control permit in general that will allow it to increase its holdings beyond this threshold, and the request is being examined by the head of the Capital Market Authority, Dr. Moshe Barkat. In the afternoon, Alrov sent a letter to Clal requesting to postpone the offering in order to find out whether it was not done out of foreign considerations, ie to prevent the dilution of Alrov’s holdings and out of a desire to prevent the acquisition of control by the real estate company.
Since the first referral was not answered by Clal, this evening Balrov sent another letter to Clal. The letter explained that “the company, therefore, hereby addresses you, and alongside its previous proposal, offers another alternative outline for a discussion with Clal, which is also intended to minimize damage to Clal and the public holding it, according to which, subject to the approval of the Honorable Capital Authority. “Insurance and Savings
“The outline will include a mechanism according to which any purchase of more than 15% of Clal’s share capital will be deposited by a trustee in accordance with a letter of trust and instructions as approved by the commissioner until the issue of the permit application is completed and clarified. And to provide significant economic advantages over the issue under consideration, including without a discount on the closing price of the share and even a premium, “the real estate company added, referring to a 7% discount on the share price offered by Clal in the issue process.
It should be noted that the issue of the holding of the shares by a trustee until a reply is received from the Capital Market Authority was raised in an article in Globes about three weeks ago. This option will give Alrov an extension to find a solution that will satisfy Barkat and the chairman of the Securities Authority, Anat Guetta. Akirov noted in an interview at the Globes Business Conference that he would devote a few months rather than years to the issue. Therefore, if he receives approval to purchase the shares on condition (while paying the sellers), but the issue of folding the layer will not be resolved during the following months, the trustee in whose hands the shares will be entrusted will be able to sell them back in the market.
As stated, this is not the first letter today that Alrov sent to Clal. In the first letter, the real estate company asked the Clal management for clarification that the issue was not made for foreign reasons. Asked the real estate company to know how the ‘discount’ was determined on the share price and whether other alternatives such as the issuance of rights, capital notes, bonds, etc. were examined, and even asked to receive minutes of the discussions on the subject.
Instead of going public, Balrov offered to open talks, “for the benefit of Clal and the public holding it,” regarding an investment in Clal, subject to obtaining a control permit, against a share issue or rights issue in Clal, in a manner that promotes Clal’s interests and benefits. Substantial economic over the issue under consideration. “
In response to the letter sent by Alrov at noon in general, they said, “We confirm receipt of the letter. The company and the board of directors conducted a structured and orderly process, taking into account all relevant considerations, with the best interests of the company in mind.”