JERUSALEM, May 26 (Reuters) - Israeli conglomerate IDB Group said on Thursday it received a non-binding offer from an unnamed buyer to acquire control of Clal Insurance.
The cash offer, which is for either between 25 to 30 percent of the company’s shares or for IDB’s entire 55 percent stake, values Clal at 2.85 billion shekels ($742 million), IDB said in a statement to the Tel Aviv Stock Exchange.
Clal was up 3 percent at 42.31 shekels in morning trading in Tel Aviv.
The offer is not subject to due diligence, IDB said, and requires stockholder and regulatory approval.
Clal says it holds an 18 percent share of Israel’s insurance market and, at the end of 2015, managed 1.6 billion shekels worth of assets. Apart from IDB’s majority stake, Israel’s Bank Hapoalim holds 9.5 percent of Clal, with 35.6 percent floated in the Tel Aviv bourse.
IDB has been trying to sell Clal Insurance for several years with no success.
$1 = 3.8421 shekels Reporting by Ari Rabinovitch