In its efforts to meet its liabilities, Alon Blue Square Israel Ltd. (BSI) announced yesterday that it had reached agreement on the sale of its interest in credit card company Diners Club Israel Ltd. Alon Blue Square Israel, which holds 36.75% of Diners Club Israel, and Dor Alon Financing Ltd. (a wholly owned subsidiary of Dor Alon Energy In Israel (1988) Ltd.) which holds 12.25% of Diners Club Israel, will sell their shareholdings to Credit Card for Israel Ltd. (CAL) for an aggregate NIS 130 million. Alon Blue Square Israel's share in the consideration will be NIS 97.5 million.
CAL, a unit of Israel Discount Bank (TASE: DSCT), already owns 51% of Diners Club Israel.
Alon Blue Square Israel is controlled by Shraga Biran and David Wiessman through privately-held company Beilsol.
CAL will also pay to Alon Blue Square Israel and Dor Alon four additional installments of NIS 5 million each over the next two years to be distributed pro rata between the two sellers subject to certain conditions.
The closing of the transaction is subject to approval from the Supervisor of Banks at the Bank of Israel, Diners Club International, and Dor Alon's shareholders.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2015
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