Is bClal Insurance Want to dilute the holdings of the company’s major shareholder, Alfred Akirov? The company reported this morning (Tuesday) that it intends to launch a share issue that will, as far as is known, stand at NIS half a billion, and will be carried out at a discount of about 7% on the market price – which stands at NIS 80 per share as of yesterday.
According to market estimates, behind the move is the desire to dilute the holdings of the real estate company Alrov , Through which Akirov holds 15% of Clal’s shares. This is against the background of Alrov’s desire to acquire control in general and to submit an application to the Capital Market Authority for a control permit for the company and to increase Alrov’s holdings to 30%. The Capital Market Authority’s investigation is underway and results are expected in the coming weeks.
The market estimates that they hope to raise about NIS 500 million. If the share issue does go ahead, additional investors will be able to purchase shares and thus dilute the share of existing shareholders. This means that if Akirov wants to keep his stake in Clal shares he will have to participate in the offering and pay for additional shares in order to maintain the holding of 15% of the company. If indeed the amount to be raised is half a billion shekels, it means that Akirov will have to inject an amount of about 75 million shekels himself in order to hold a share price similar to the one he holds today.
Apparently, this is also an option for him to increase his share, but as of today and as long as approval has not been received for the control permit application, he is prevented from increasing his holdings beyond 15% so if the issue goes ahead The holding rate is similar to the one he holds today.
On the other hand, sources in Clal’s environment claim that the goal is to use the funds raised for the development of the holding company, among other things for the benefit of mergers and acquisitions.