In the insurance group Menorah Insurers It is believed that the financing company ERN is approaching an IPO, and the agreement enshrines the acquisition of control over it. lamp , Which currently owns 40% of ERN, has signed a deal with the company’s current controlling shareholder, Roni Nathanson (60%), as part of which it will increase its holdings by an additional 10% and will be the controlling shareholder in the financing company. ERN specializes in securing a commitment to repay checks for businesses and in providing consumer loans at points of sale.
This is a step similar to the one performed by a group The Phoenix At issue Gamma Last year, then, Phoenix increased its holding in Gamma to 60% and became its controlling shareholder, incidentally recording a capital gain of NIS 230 million. Menora Mivtachim expects that the issuance of ERN, at an expected value of NIS 700-800 million (before the money), will lead to a flood of value in its existing investments in the financing company and will record a capital gain of NIS 200-250 million.
The value at the time of the IPO may increase, after Bank Leumi announced this week that it is investing NIS 85 million in a subsidiary of ERN, the consumer credit company “Financing in a Click” that specializes in providing credit at points of sale – BNPL. As part of the deal, which was led by Eyal Efrat, head of the strategy, digital, data and horizontal projects division at Leumi, the bank will purchase 20% of the company’s shares for NIS 65 million. The deal reflects financing with a value click (after the money) of NIS 325 million. It should be noted that an additional NIS 20 million will be provided as an owner loan and will constitute 20% of all owner loans in the company.
Menorah believes that the investment in the subsidiary will increase the price of the parent company, if and when it is issued.