The Capital Market Authority is making it difficult for Alfred Akirov to acquire control of General Insurance. The Authority, headed by Amit Gal who serves as the CEO, informed Akirov that he would not be able to acquire the control through the public Elrov Real Estate but only privately. This means that if he still wants to acquire control of the company, he will have to do so by transferring hundreds of millions of shekels privately.
● Guetta against Akirov’s intervention in general: “A shareholder cannot inject his interest into the company”
● Alfred Akirov sharpens the opposition: the purchase of Max – Zoya, lowers the value of Clal Insurance to the floor
● Chairman of a bank and advisor to Ituro: the former regulator’s multiple hats
Elrov currently owns 15% of Clal shares and is still waiting for approval from the Capital Market Authority to obtain a control permit that will allow it to increase its holdings to 30%. This approval is being delayed when Alrov has to overcome obstacles such as dealing with a ban on owning three tier companies, when as of today it constitutes one tier, Klal Public Holdings is the second tier and Klalbit Mimon is the third tier.
In addition, the Authority made it clear to Akirov that it is not satisfied with his interference in what is going on in general, especially regarding the purchase of the Max credit card company which should be closed in the coming days. In the Authority’s opinion, the exchange of letters between Alrov and the management and board of directors is done in violation of the holding permit given to him.
Along with the restriction on the purchase of Clal by the public Alrov, the Authority placed another obstacle in front of Akirov. On Thursday, a shareholders’ meeting is expected to be held in which directors will be elected at all public holdings. This vote will be of great importance regarding the implementation of the deal to purchase control of the Max credit card company, which Akirov opposes. He will try to propose two directors on his behalf, but even if they are elected, he will be able to appoint only one of them to the insurance company. Although the vote on the Clal transaction will be in the holding company, this has the effect of narrowing his steps within the insurance company, which is the main source of Clal’s activity.
Malerov responded:
Alrov received the letter, she will pass on her clarifications to the supervisor and will continue to act according to his instructions. We have great respect for the commissioner’s actions, which ensure the financial stability of the entities supervised by him. We will comply with all the instructions, in order to move forward with the request for a permit to control the general insurance.