Health Services Clalit Buys Herzliya Medical Center Stake, Blocking Investors
Translated & summarized from Ice by baba
Clalit Health Services will acquire a controlling stake in Herzliya Medical Center by exercising its right of first refusal, blocking previous deals by Yitzhak Tshuva and Assaf Rappaport's group. The Ministry of Health favors HMO control of private hospitals.
The story in 5 lines · by baba
- Clalit Health Services will buy 10% more of Herzliya Medical Center.
- This gives Clalit majority control, increasing its stake to 50%.
- The deal blocks investors Yitzhak Tshuva and Assaf Rappaport.
- The Ministry of Health prefers HMO control of private hospitals.
- Herzliya Medical Center is a major private hospital in Israel.
Clalit Health Services will exercise its right of first refusal to purchase an additional 10% of Herzliya Medical Center from founder Yair Landau for approximately NIS 120 million. This transaction values the hospital at NIS 1.2 billion and will increase Clalit's stake from 40% to 50%, reducing Landau's share to 40% and leaving Israel Insurance with 10%.
The move sidelines two major investors who recently sought to acquire shares in the private hospital. In January, businessman Yitzhak Tshuva agreed to buy 25% of the hospital's shares at a valuation of NIS 1.1 billion. However, the Ministry of Health indicated its preference for a health maintenance organization to control the hospital.
Following regulatory opposition to the Tshuva deal, Wiz founders, led by Assaf Rappaport, had reached an agreement with Landau to purchase 10% for NIS 120 million. The Ministry of Health, under Director-General Moshe Bar Siman Tov, is promoting a policy favoring HMO control over private hospitals to strengthen the link between private and public healthcare.
In light of this policy, Clalit's leadership, Chairman Yochai Locker and CEO Eitan Wertheim, decided to exercise their right of refusal. Clalit is expected to become the controlling shareholder of Herzliya Medical Center, one of Israel's largest private hospitals, which performs around 26,000 surgeries annually.
Mentioned
