Businessman Alfred Akirov Seeks to Delist Alrov Real Estate, Aiming for Control of Clal Insurance

Businessman Alfred Akirov is advancing his plan to delist Alrov Real Estate and Hotels from the Tel Aviv Stock Exchange, a move that could bring him closer to his long-held ambition of gaining control of Clal Insurance. The full details of his tender offer were published, allowing minority shareholders to accept the offer until October 28 at 2 p.m. Akirov Holdings and Akirov Investments and Development are seeking to purchase approximately 11.87% of Alrov's shares, totaling 2,445,424 shares, at a price of NIS 322.41 per share. The maximum consideration for this acquisition could reach approximately NIS 788.4 million.

If the tender offer is successful, Alrov's shares will be removed from trading, and the company will become private. It will continue to be a reporting entity as long as its bonds are publicly held. This initiative is not new; Akirov's companies announced their intention for a full tender offer in late September. The official specification now sets the precise timeline and conditions for the deal's completion.

Akirov has secured significant support for this offer, with Mor Investments, holding about 1.227 million Alrov shares, already agreeing to tender its entire stake. While this represents about half of the shares targeted for purchase, additional shareholder acceptance is still required to finalize the delisting.

The underlying motivation for delisting Alrov is Akirov's ongoing pursuit of control over Clal Insurance. Alrov is currently Clal's largest shareholder, holding about 14.2% of its shares, valued at approximately NIS 3.12 billion. Clal Insurance has operated without a controlling shareholder for years.

Akirov, who serves as Alrov's chairman, has faced regulatory hurdles in his attempts to increase his stake in Clal, particularly concerning Israel's concentration law, which limits pyramid structures in public companies. Acquiring control of Clal through Alrov in the current structure could create a three-tier pyramid, violating these regulations. Making Alrov a private company might offer Akirov the flexibility to restructure his holdings, potentially transferring Clal's shares to a private entity within the group. However, this remains a possibility, not a declared plan, and delisting Alrov does not automatically remove regulatory obstacles to controlling Clal.

Alrov's financial performance has been impacted by market volatility. In the second quarter of 2026, the company reported a net profit attributable to shareholders of approximately NIS 120 million, a 78% decrease from the same period last year, partly due to lower gains from changes in the value of financial holdings. For minority shareholders, the offer price represents a premium of about 2.29% over the closing price on October 12, and a larger premium of about 21.8% compared to the share price before the initial announcement in late September.

The crucial question is whether Akirov will achieve the necessary shareholder acceptance by October 28 to proceed with delisting Alrov. If successful, the greater challenge will be to navigate the complex ownership structure and regulatory requirements to ultimately gain control of Clal Insurance, a goal he has pursued for years.