Clal Insurance in Advanced Talks to Invest in Value Base

Clal Insurance Group, led by CEO Yoram Naveh, is in advanced negotiations to make a significant investment in the investment house Value Base. Under the proposed deal, Clal would inject approximately NIS 140 million in cash directly into Value Base, acquiring between 18% and 20% of the company. This would value Value Base at an estimated NIS 600 million before the investment.

The move by Clal, a major Israeli insurance and finance company, follows a series of high-profile deals by Value Base, which is headed by founders Victor Shamrich and Ido Neuberger. In the past year, Value Base has managed strategic transactions worth billions of shekels, including the sale of control in Dan Transportation, the merger of Dan Real Estate with Donitz, the IPO of Sugat, and representing Israel Discount Bank's board in its sale to the Delek Group.

Clal's acquisition aims to narrow the gap with direct competitors in the underwriting sector, where it lags behind firms like Harel, The Phoenix, and Migdal. Beyond underwriting, the deal will allow Clal to diversify its revenue streams by entering the private equity fund management and alternative investments sectors, in which Value Base specializes.

Negotiations were previously paused in 2024 due to an insider trading investigation that concluded with the company's full acquittal, alongside a case involving a former analyst who was fired. These concerns have now been fully resolved, and Clal views Shamrich and Neuberger as experienced partners who have been tested through crises. This potential investment follows Clal's acquisition of the credit card company Max in 2023, and the company is reportedly exploring further expansion in portfolio management and mutual funds to solidify its position as a comprehensive financial entity in Israel.