The insurance group Menorah Insurers Announced this morning (Tuesday) that it intends to purchase its own shares in the amount of NIS 100 million. Board of Directors Menora Insurances Holdings , The parent company of the insurance company, has approved the acquisition plan whose implementation is expected to begin on March 30 and last for an entire year, until March 29, 2023.
Ari Kalman, CEO of Menora Mivtachim Holdings, said after the plan was approved by the board that “the self-acquisition plan indicates the strengths of the Menora Mivtachim Group and is a dividend distribution, in addition to the dividend distribution policy adopted by the company which is the highest in the industry (35% of profit)”.
“Implementation of the plan is not expected to adversely affect the financial situation”
In a report published by the company to the stock exchange, some of the board’s considerations for implementing the acquisition plan were explained. The Board of Directors explained that the current period is accompanied by investment opportunities and that the Company’s profits enable the repurchase of its shares in accordance with the acquisition plan. The company reported a total profit in the first nine months of 2021 in the amount of NIS 578 million, compared to a total profit of NIS 285 million in the first nine months of 2020, an increase of 102%.
“The implementation of the plan is not expected to materially adversely affect the Company’s financial position including its capital structure, liquidity status, rating limits and existing financial criteria,” the company said, adding that the acquisition meets the distribution tests and the self-acquisition is a dividend distribution beyond the dividend distribution policy. By the company and that as of the date of approval of the plan, the company has a distributable profit balance in the amount of approximately NIS 4.14 billion.
“The Company’s Board of Directors examined the effect of the division on the Company’s financial position, the Company’s capital structure, existing and expected liabilities, the sources of financing available to the Company to repay its existing and future liabilities, the Company’s expected cash flow, compliance with financial requirements and the implications of the acquisition plan. The Company’s operations in its existing format and in various scenarios also examined data regarding the Company’s current financial condition, based on its financial statements and in light of the fact that the Company does not have warning signs as defined in securities regulations. Sustainability and what is expected when the time comes for them to exist, “said Menora Mivtachim.
Among other things, the shares will be used to implement the employee stock option plan
The company also stated that the shares that will be purchased in accordance with the acquisition plan, can be used, among other things, for the purpose of implementing the employee options plan. About two weeks ago, the company published the outline of the option distribution plan and reported that it intends to distribute up to 2.9 million options to employees, which could be converted into 1.29 million shares.
Menora Mivtachim Holdings is managed by Ari Kalman and its chairman of the board is Eran Grifel. The company is traded at a value of NIS 4.89 billion. The insurance company, the company’s largest source of revenue, is managed by Yehuda Ben Assayag.
Menora Mivtachim follows The Phoenix Which recently conducted two rounds of self-purchase shares. It completed its first acquisition in the amount of NIS 100 million during the past year and in August 2021 the Board of Directors approved another self-purchase plan for a period of up to NIS 100 million, of which Phoenix made a self-purchase of shares in the amount of NIS 74 million until November .