IDB Holding Corp. Ltd. (TASE:IDBH) today told Tel Aviv District Court Judge Eitan Orenstin that the potential buyers of 30% of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) intend to deposit a $20 million in an escrow account in Israel within days, and that an executive delegation will come to Israel to pursue the negotiations and carry out the necessary checks.
On Wednesday, IDB said that consortium interested in Clal Insurance comprised two entities, one from Thailand and the other from Hong Kong, and that the Thai investor would be the dominant partner. The media has reported that the potential buyers are Thai conglomerate CP Group (Charoen Pokphand), controlled by Dhanin Chearavanont, and Hong Kong businessman Li Haifeng.
IDB said, "There are some open points which require approval by the buyers' representatives." It added that, while the parties' representatives were trying to close a deal by the end of next week, the buyers have asked for a few more days for checks. In other words, notwithstanding regular reports by IDB's attorneys, no sale of Clal Insurance is likely in the next few days.
Moreover, even if Dankner closed a deal with the foreign investors, he still faces the biggest hurdle: obtaining a permit to transfer the controlling interest in Clal Insurance from Supervisor of Capital Markets, Insurance and Savings Prof. Oded Sarig. This is no sure thing, and the process could face difficulties given that Clal Insurance is Israel's largest manager of other people's money, with NIS 120 billion in assets under management, and the unfamiliarity with the foreign buyers.
Published by Globes [online], Israel business news - www.globes-online.com - on August 8, 2013
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