Multiple Bidders Emerge for Cal Credit Card Company

Following the collapse of a deal with George Horesh and Harel, Bank Discount is reportedly overwhelmed by the significant interest in acquiring Cal, one of Israel's major credit card companies. Among the new potential buyers are Assaf Rappaport, co-founder of Waze, who is reportedly close to securing the McDonald's franchise in Israel, and the founders of Direct Insurance, Muki and Doron Shneidman. Rappaport's group and the Shneidman brothers have reportedly contacted senior Bank Discount officials involved in the sale to explore acquisition possibilities and request company information. Rappaport's team is expected to seek a larger partner for the acquisition to navigate Bank of Israel's approval process.

The previous deal, valued between NIS 3.75 and 4 billion, was halted by the Antitrust Authority, which conditioned its approval on Horesh selling his stake in Super-Pharm, a competitor to Shufersal's pharmacy chain. Shufersal operates a large customer club that issues credit cards through Cal.

Other interested parties include Daled Auto, owned by Gil Agmon, which is considering purchasing 50-55% of Cal's shares. Centana Bridge Fund is also expected to submit an offer, along with potentially Zvi Barak and Ayalon Insurance. Jerusalem Bank, controlled by the Shoval family, has also expressed interest. Meanwhile, Glilot Capital, which previously held a stake in Phoenix Insurance with Centana Bridge Fund, has met with Agmon, suggesting a potential joint bid of around NIS 3.4 billion, positioning them as frontrunners.

George Horesh is reportedly unwilling to abandon the deal entirely and is open to a minority stake alongside a foreign or Israeli entity that would take the lead. Horesh and Harel are obligated to pay a NIS 187 million penalty if the deal falls through, giving them some flexibility on price. The deadline for Horesh and Harel to meet the deal's conditions is November 1. Bank Discount is not negotiating with them until then but is preparing for a new tender process.

Bank Discount is internally divided on whether to finalize a quick deal with Horesh or initiate a swift tender to potentially secure a better price. The renewed interest in Cal, despite recent setbacks like the departure of its large "Fly Card" club to rival Isracard, is attributed to several factors. These include the perception of a lower purchase price, favorable timing following the October 7th events, Cal's advanced technological infrastructure, and the scarcity of large financial assets available for acquisition in the Israeli market. The success of billionaires like Horesh and Yair Hamburger in securing the initial deal also lends credibility to Cal's attractiveness.