Barak Capital Ltd. and Leader Underwriters submitted a binding offer to acquire IDB Development Corp. Ltd.'s 20.3% stake in Israel-based Clal Insurance Enterprises Holdings Ltd. for 630 million Israeli shekels, Globes reported.
Barak Capital and Leader Underwriters are proposing to acquire 7.5 million of the 11.3 million Clal Insurance shares beneficially owned by IDB Development in exchange for IDB Development series 9 bonds. According to the report, 600 bond units constitute a Clal Insurance share.
Underwriters sought an option to acquire 3.7 million more Clal Insurance shares at a rate of 53.3 shekels apiece in cash or in series 9 bonds.
The offer is reportedly on the table until Aug. 12, the day when series 9 bondholders are expected to make a decision on asking for the repayment of 1.2 billion shekels in debt.
As of Aug. 9, US$1 was equivalent to 3.48 Israeli shekels.