Battle for Cal Begins Amidst US Interest and Discount Bank Pressure
Translated & summarized from TheMarker by baba
The sale of credit card company Cal, co-owned by Discount Bank and Bank Leumi, is facing new challenges after a deal with Union and Harel Investments was blocked. The Commissioner of Competition imposed conditions that led to the deal's collapse, raising questions about potential fines and an IPO. New interest from foreign investors is emerging as Discount Bank struggles with decision-making.
The story in 5 lines · by baba
- Cal's sale to Union and Harel Investments was blocked by the Commissioner of Competition.
- The Commissioner cited concerns over information leakage due to Cal's involvement with Shufersal.
- Union Investments may face a NIS 150 million fine, and Discount Bank might consider an IPO.
- New foreign investment interest in Cal is reportedly emerging.
- Cal is jointly owned by Discount Bank (72%) and Bank Leumi (28%).
The struggle for control of the credit card company Cal has intensified following the collapse of a previous deal and new expressions of interest. Cal is currently co-owned by Discount Bank (72%) and Bank Leumi (28%).
A proposed sale of Cal to Union Investments, owned by George Horesh and his family, and Harel Investments, owned by Yair Hamburger and his family, for NIS 3.75-4 billion was blocked last month by the Commissioner of Competition, Michal Cohen. The Commissioner conditioned approval on Union selling its stake in Super-Pharm, citing concerns about information leakage due to Cal's involvement with the Shufersal Finansim club, whose parent company Shufersal owns Be, a direct competitor to Super-Pharm. Additional restrictive conditions were also imposed on Union and Harel.
Amidst these developments, the market is questioning whether Horesh is attempting to evade a NIS 150 million fine and if Discount Bank will be forced to pursue an initial public offering for Cal. While Union and Harel explore a complex arrangement to bring in a foreign investment fund, Discount Bank faces difficulties in making decisions regarding the company's future.
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