Hong Kong-based JT Capital Management has deposited a sum of $7.7m to the trustee of Israeli insurance company Clal Insurance, to purchase certain stake from IDB Holding (IDBH).
In early August 2013, Israel insurance supervisor Oded Sarig ordered the transfer of controlling share in Clal to a trustee named Moshe Tery, with immediate effect, due to the prevailing crisis at IDB, as reported by the globes.co.
As per the acquisition agreement inked on 20 August, JT Capital had already deposited NIS20m, which sums up total amount up to NIS100m, planned to be used to reimburse compensation, it the Chinese company fails to acquire the stake.
Based on the terms of the transaction, IDB Development will divest 32% stake of Clal Insurance to JT Capital for NIS1.47bn, at a company value of NIS4.6bn.
On 26 August, Tel Aviv District Court Judge Eitan Orenstin agreed to IDB Development’s motion to approve the disposal of Clal Insurance.
Orenstein told the news agency, "In view of the points of the motion, the advantages claimed by the company in contracting the deal, and the absence of objections, I hereby approve the motion."