Multiple Bidders Vie for Control of Cal, Israel's Third-Largest Credit Card Firm
Translated & summarized from Calcalist by baba
Discount Bank is seeing significant interest in selling Cal, its credit card company, after a deal with George Horesh and Harel Insurance fell through. New potential buyers include Waze co-founders led by Assaf Rappaport and the Bituh Hayashir group. Other contenders are Delyk, Centerbridge Partners, Jerusalem Bank, and Glilot Capital, with some forming joint bids. The company's advanced technology and the lack of similar assets for sale are key drivers of the interest.
The story in 6 lines · by baba
- Assaf Rappaport and Waze co-founders are among new bidders for Israel's Cal credit card company.
- Bituh Hayashir group, led by Muki and Doron Shneidman, is also exploring a purchase of Cal.
- A previous NIS 3.75-4 billion deal for Cal with George Horesh and Harel was blocked by regulators.
- Delyk, Centerbridge Partners, Jerusalem Bank, and Glilot Capital are also interested in acquiring Cal.
- Cal's advanced technology and scarcity of large financial assets are fueling the bidding war.
- The deadline for Horesh and Harel to meet deal conditions is November 1st.
Discount Bank is experiencing a surge of interest in its sale of Cal, Israel's third-largest credit card company, following the collapse of a previous deal. Among the new potential buyers are Assaf Rappaport and other Waze co-founders, who are also reportedly close to acquiring the McDonald's franchise in Israel. Additionally, the Bituh Hayashir group, led by founders Muki and Doron Shneidman, is exploring a purchase. Representatives from both groups have held discussions with Discount Bank officials regarding the acquisition and have requested company information.
The previous deal, valued between NIS 3.75 and 4 billion, was with George Horesh and Harel Insurance. However, the Antitrust Authority blocked it, conditioning approval on Horesh selling his stake in Super-Pharm, a competitor to Shufersal, which partners with Cal for its credit card operations. Horesh is reportedly willing to retain a minority stake in Cal if a deal can still be reached, potentially with a foreign or Israeli partner, alongside Harel.
Other interested parties include Gil Agmon's Delyk, which is considering buying 50-55% of Cal's shares. Centerbridge Partners is also expected to submit an offer, as are Zvi Barak and Ayalon Insurance. Jerusalem Bank, controlled by the Shoval family, and Glilot Capital are also in the running. Glilot Capital, which previously held a stake in Phoenix Insurance with Centerbridge, has met with Agmon, and they may jointly bid around NIS 3.4 billion, positioning them as early frontrunners.
Despite recent setbacks for Cal, including the loss of its large Play Card customer base to rival Isracard, the company's advanced technological infrastructure and the scarcity of large financial assets available for acquisition in Israel are driving the renewed interest. The timing, following the October 7th events, may also be more favorable now than during the previous tender, with potential buyers more confident in Israel's economic recovery. The deadline for Horesh and Harel to meet the deal's conditions is November 1st, after which Discount Bank may initiate a new tender process.
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