Alfred Akirov Moves to Privatize Alrov Real Estate to Gain Control of Clal Insurance

Alfred Akirov intends to delist Alrov Real Estate from the stock exchange through a tender offer for all publicly held shares. The offer is set at NIS 32.21 per share, a 21.6% premium over the current market price. Akirov's private holding company, Alrov Holdings, would need to pay NIS 788 million to public shareholders to complete the acquisition. Investment house Meitav Dash, the sole institutional investor holding a significant portion of public shares, has indicated its intention to accept the offer. Akirov currently controls 89% of Alrov Real Estate, which has a market capitalization of NIS 5.5 billion. The offer values the shares at 90% of the company's equity. Meitav Dash holds a 6% stake, which is sufficient to ensure the tender offer's success. Akirov's primary objective is to gain control of Clal Insurance, a goal he believes is more feasible through a private company. Acquiring control via a public company would create a three-tier pyramid structure, posing challenges under Israel's concentration law. To avoid holding a third tier, Akirov would also need to repay NIS 1.18 billion in bonds, a move he has not yet indicated an intention to make.