© JL Watkins, Courtesy of Palo Alto Networks
| Adam Cohen, FUNDER News |
About two weeks after the announcement of , the new digital bank esh is strengthened from the institutional side: Clal Insurance and Finance will become the owner of about 5% of its shares.
Following the receipt of the license from the Bank of Israel on December 25 to establish management and control of the new esh bank, the group gained the trust of the institutions, when Clal Insurance and Finance (TASE:), one of the largest insurance companies in Israel, is expected to invest NIS 100 million in the esh group and thus become the owner of 4.99% of the shares in each from the two group companies – the bank and the technology company. Completion of the transaction will reflect an aggregate value of NIS 1.8 billion to the esh group companies.
This transaction comes about two weeks after the Governor of the Bank of Israel, Prof. Amir Yaron, and the Supervisor of Banks, Yair Avidan, granted Yuval Aloni, Nir Tzuk (pictured above), one of the founders of Palo Alto Networks (NASDAQ:), Alex Libernet and Alon Shine the license to establish, manage and control the bank New in Israel called esh, where Prof. Shmuel Hauser (former chairman of the Israel Securities Authority) will serve as chairman of the new bank.
esh bank, based on unique technology, will offer current accounts and appeal to private, independent and corporate customers, as well as deposit products, loans, payments and credit cards.
The bank is headed by first class banking and technology professionals. As CEO of the bank will be Kobi Malkin (CEO of Otzar Hay’il Bank and former Bank Masad). Dr. Nadine Budo-Trachtenberg, former deputy governor of the Bank of Israel, will serve as deputy chairman of the board of directors.
Hauser said:
“Clal Insurance and Finance’s decision, as a leading institutional body, to join us on the journey, is an expression of confidence of the institutional market in the esh group and in its vision.”
Barak Bansky, Senior Vice President, Manager of the Peer Investments Division in General Insurance and Finance, said:
“We believe in the high-quality team with experience in the growth of companies in the world of technology, who have joined a very high-quality group from the financial world. We think that this is a different bank in the Israeli landscape, which will create value for its customers and that the investment will generate for my Clal Insurance and Finance colleagues, a return in excess of the alternatives. We will continue to look for high-quality partners to join with them, in order to continue generating optimal returns for our colleagues.”
Yuval Aloni, CEO of the esh group, wrote:
“We congratulate Clal Insurance and Finance, which will join the existing shareholders, who have so far invested over NIS 100 million. After the transaction is completed, the total investment in the esh group will be over NIS 200 million. This investment will allow us to develop the product in accordance with the group’s vision for our entry into the market.”
The article was first published on the FUNDER website.