Businessman Nochi Dankner
Photo: Yariv Katz
Dankner's Clal sells Guard for $220M
US insurance company sold to Warren Buffett's Berkshire Hathaway; Clal Insurance bought Guard five years ago for about $120 million
Clal Insurance Enterprises Holdings, controlled by Nochi Dankner, concluded on Thursday the sale of its holdings in US subsidiary Guard to National Indemnity Company (NICO), a subsidiary of Warren Buffett's Berkshire Hathaway, for $220 million.
Clal Insurance also plans to repay the bank a NIS 230 million ($60 million) loan, which is a significant debt for the company, as well as distribute dividends according to a scheme laid out by the board of directors.
Clal Insurance was released from a $48 million cash loan it had received from a banking corporation. Clal intends to earmark NIS 200 million (about $52 million) of the proceeds to shore up capital at its subsidiary Clal Insurance.
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As reported by Calcalist, over the past several weeks a US investment bank commissioned by Clal Insurance has been coordinating the sale procedure, which included several US investment funds and insurance companies. NICO submitted the highest bid.
Clal Insurance acquired Guard less than five years ago on a $120 million market cap, a transaction it had financed by loans. Upon the acquisition, Clal Insurance poured further funds into Guard.
The sale follows that of Broadgate Underwriting to Torus Insurance Holdings. Broadgate coordinated Clal Insurance's Europe operations.
This report was originally published in Hebrew by Calcalist
