Alfred Akirov Offers $215 Million to Delist Alrov Real Estate

Businessman Alfred Akirov has submitted an offer to purchase the public's shares in Alrov Real Estate, a move that would delist the company from trading if accepted by shareholders. The offer aims to facilitate Akirov's pursuit of full control over Clal Insurance, potentially easing regulatory hurdles.

Akirov is proposing a generous premium to public shareholders, offering 322.4 shekels per share, which represents over a 20% increase compared to the stock's closing price on the last trading day. Should shareholders accept, Akirov would need to pay approximately 788 million shekels (about $215 million) for their stakes.

Alrov Real Estate, which has seen its stock rise 8% this year, primarily invests in income-generating hotel properties, including several luxury hotels in continental Europe. The company has also increased its holdings in the financial sector, notably its significant stake in Clal Insurance.

Alrov holds a 14.2% stake in Clal Insurance, valued at 3.3 billion shekels. The company has benefited from the recent boom in insurance stocks, realizing capital gains from this investment. Akirov, who chairs Alrov Real Estate, has reportedly been in a long-standing dispute with regulators over his desire to gain full control of Clal Insurance, which has operated without a controlling shareholder for years despite Alrov being its largest shareholder.

Clal Insurance has successfully navigated the competitive landscape of acquiring credit card companies, notably purchasing Max while competitors Harel and Menora Mivtachim failed to acquire Isracard and recently Cal. Akirov's move could streamline his path to controlling Clal Insurance.