Clal Insurance Explores Investment in Investment Bank Value Base

Clal Insurance is reportedly considering a significant investment in the investment banking firm Value Base, aiming to re-enter the underwriting, investment banking, and capital markets sector. This move follows a similar intention announced two years ago to invest in Value Base. The current proposal involves Clal acquiring an 18%-20% stake in Value Base at a pre-money valuation of NIS 600 million, which would translate to an investment of approximately NIS 130-150 million. This potential deal is the second recent transaction in Israel's financial sector, following the sale of Altshuler Shaham Finances to Wensure Insurance.

According to Clal's statement, the investment would involve a share allocation and capital injection to support Value Base's continued growth. However, Clal emphasized that the discussions are in an "initial stage" and full agreements have not yet been finalized. Value Base, founded in 2013, is controlled by Victor Shamrich and Ido Neuberger, with remaining shares held equally by Natan Hets (Alony Hetz), Dodi Wertheim (Coca-Cola, Keshet, Mizrahi Tefahot Bank), and the Meitav investment house, owned by the Steinfels and Bar-On families.

Value Base specializes in initiating and enhancing investments in public and private companies, offering financial services such as capital and debt raising, share distribution, mergers and acquisitions, and representing international investment bodies in Israel. In the past year, Value Base was involved in selling its stake in the public transportation company Dan for NIS 2.8 billion and signed a memorandum of understanding to merge Dan Real Estate with Donitz for NIS 3 billion. The firm also participated in the merger of software companies Magic-Matrix, represented Isracard in its control sale to the Delek Group, and provided underwriting services for the offerings of Sugat, Michpal, and Rafec Energy.