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DS Apex to buy Meitav, create Israel's No. 2 broker
March 20, 2012 / 10:34 AM / 6 years ago

DS Apex to buy Meitav, create Israel's No. 2 broker

JERUSALEM (Reuters) - Israel’s DS Apex Holdings DSAP.TA said on Tuesday it plans to buy rival Meitav Investment House through a share swap in a move that would create Israel’s second largest brokerage.

The combined entity will manage pension fund and other assets of 104 billion shekels ($28 billion), DS Apex said in a statement to the Tel Aviv Stock Exchange.

As part of the deal, which still needs antitrust approval, the owners of Meitav will hold 45 percent of the combined company’s voting rights.

DS Apex also said it would pay a dividend of 187.5 million shekels, or 5.3 shekels a share to shareholders in the company before completion of the deal.

Meitav is 35 percent owned by the Stepak family, 28.6 percent by Direct Insurance (DIFI.TA) and 21.4 percent by Gaon Holdings (GAON.TA). DS Apex, whose market value jumped to 661 million shekels, is 57.3 percent held by the BRM Group.

Under the deal, the Stepak family will buy 2.8 million shares in Meitav from BRM at 22.25 shekels per share for a total of 62.4 million shekels. Both groups will then own 28.64 percent of the merged company.

    DS Apex’s shares were up 22.2 percent at 17.28 shekels a share at midday.

    Psagot Investment House is Israel’s largest brokerage.

    ($1 - 3.75 shekels)

    Reporting by Steven Scheer; Editing by Hans-Juergen Peters

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