IDB Holding has announced that it has received bids from several interested parties for the acquisition of its 27.5% stake in Clal Insurance, in response to tender to offload half its stake in the company.
According to a debt settlement agreement inked with the bondholders and as per the directive of the court to divest the stake by 22 August, the bank launched a tender offer, which ended on July 18, as reported by Globes.
It is expected that many global insurers and financial institutions, including US private equity fund KKR, AIG, AXA Group SA and China Hang Lung Group have placed their first round of bids.
IDB said that the sale process will continue and also believes that it may receive one or more additional offers early this week.
Under the second phase of sale process, which is likely to start by 7 August, IDB will invite suitable and potential buyers and offer them a draft purchase contract and shareholders agreement and the entire process is expected to close by 22 August.
On 24 May 2013, IDB said that a foreign fund has shown interest in acquiring Clal Insurance at a company value of NIS4.5bn ($1.25bn).