Generali confirms seeking sale of Migdal
Announcement to TASE reveals Italian group has received several acquisition proposals for insurance company's controlling interest but has yet to respond
According to the report, Generali stated received a number of proposals for Migdal's controlling stake but has yet to respond to the proposals.
It appears from the statement that Generali seriously intends to negotiate the sale of the controlling interest, whereas in similar incidences in the past the company would release a laconic statement saying it was not selling its control over Migdal.
Businessman David Azrieli and the Apax Fund expressed their interest in acquiring the company's control in the past. However, the acquisition became irrelevant for Apax agenda after it acquired controlling interest of the Psagot investment house.
Azrieli is now prohibited from acquiring Migdal due to the recommendations of the Concentration Committee, which ban controlling shareholders from simultaneous ownership of real and financial holdings.
Generali is one of the founders of the Israeli insurance company, which was founded 75 years ago. The Italian group holds a 70% stake of Migdal.
Migdal's current market value is NIS 5.7 billion ($1.5 billion) and its value for the deal is estimated at NIS 7 billion ($1.8 billion).
The value of the Italian insurance giant's stake in Migdal is NIS 3.9 billion ($1 billion), meaning that the deal may be higher than NIS 5 billion ($1.3 billion).
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