Battle for Credit Card Firm Cal Reopens with New Bidders

Discount Bank is preparing to relaunch the sale of Cal, a major Israeli credit card company, after a previous deal was blocked by the Antitrust Authority. The bank, which holds 72% of Cal, and International Bank, holding 28%, must divest their controlling stakes by May 2027 due to regulatory requirements.

Despite Cal recently losing the "Fly Card" club from El Al to a competitor, demand for the company remains high. While many market players are eyeing minority stakes, some are still interested in acquiring full control. "D" Automotive, controlled by Gil Agmon, is reportedly a leading contender, seeking to diversify beyond its traditional automotive business. A large foreign fintech company and U.S. investment funds Centerbridge and Gallatin are also reportedly joining the bid.

Notable potential minority investors include Assaf Rappaport, founder of Waze, who has already met with Discount Bank CEO Avi Levi. Other interested parties include institutional and financial entities such as Migdal, Ayalon, Direct Insurance, Amפא Capital, and Jerusalem Bank. The original buyers, George Horesh and the Harel Group, are also attempting to form a new consortium, with Horesh aiming for a 20%-30% minority stake, hoping this revised approach will gain regulatory approval.

Discount Bank's primary goal is to maximize the sale price while ensuring a buyer who can navigate regulatory hurdles smoothly. Although an IPO is also being considered, the current level of interest suggests Cal is likely to find new owners soon.