Alfred Akirov: “The illusory purchase of Max lowers Clal’s value to the floor”

Alfred Akirov, the controlling owner ofAlrov Real Estate who through it owns 15% ofClal Insurance , continues to fiercely attack the insurance company’s plan to take over the credit card company Max. Last August, Clal Insurance signed a binding agreement to purchase Max, but the transaction is still awaiting approval from the various regulators. Akirov, the largest shareholder in Katal Insurance, has been conducting an open and fierce fight in recent weeks against the intention of the insurance company managed by Yoram Neve to complete the transaction.

● Akirov takes Clal to court: “We know that their status will be harmed if we get a control permit”
Will Akirov give up control at all? He will not be able to purchase the shares privately
The deal of the year in the world of finance: who gained and who lost from the sale of Max | Surgery

According to Akirov, the purchase of Max at a value of NIS 2.47 billion, which has since dropped below NIS 2.4 billion due to the decline in Clal Insurance shares, which make up about a quarter of the payment in the transaction, is still at an inflated price. In a conversation with Globes, Akirov says that “I didn’t buy Max, I bought shares of Clal Insurance. The Max deal lowers the value of Clal to the floor. The deal is done at a ratio of 160% to the capital, while the competitor Isracard trades on the stock exchange at 70% to the capital.”

According to him, such a transaction occurs because Kalal Insurance does not currently have a controlling owner, therefore the managers control it, but they harm the investment he made as a shareholder.

Akirov adds and affirmatively mentions another deal promoted by Clal Insurance’s competitor, the phoenix . A few weeks ago, Phoenix decided to buy up to 20% of the Meir Group at a value of NIS 3.8 billion. The Meir Group is an importer of Volvo vehicles controlled by Yaakov Shahar, and as part of the transaction Phoenix enters as a financial investor who will not take part in the day-to-day management.

Akirov points out in this context that “The Phoenix bought 20% of the Meir Group and this is an excellent deal. But it is not built on the management of the Meir Group by the Phoenix. Clal Insurance does not know how to manage its insurance activities, because it loses money. So it will also manage Max ?”.

“It’s an imaginary deal,” says Akirov, adding that he is considering suing Clal Insurance if it completes it. “You will be sued for the damages caused to me. An insurance company is allowed to make investments, just like the Phoenix did, but this is an investment without management.”

Meanwhile, the controlling owner of Alrov Real Estate, Akirov, can take solace in the successful results for the third quarter of his company. Revenues jumped by 75% to NIS 472 million, mainly thanks to a 92% jump in hotel revenues and positive rates of NIS 161 million. The operating profit increased by 120% to NIS 252 million.In the bottom line, the net profit attributable to shareholders jumped more than three times compared to the corresponding quarter last year and amounted to NIS 138 million.

Alrov Real Estate shares are climbing 3.2% on the stock exchange at this time, with the company’s market value at NIS 4.3 billion.


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