Published On: Mon, Mar 17th, 2014

Giza Singer Even seeks investors to buy Dexia Israel

Dexia Israel, controlled by Franco-Belgian Dexia Group, specializes in municipal credit.
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/ By Irit Avissar and Efrat Peretz /Sources inform ”Globes” that financial consultancy firm Giza Singer Even Ltd. is trying to organize an investors group to acquire control of Dexia Israel (Public Finance) Ltd. (TASE:DXIL) from Dexia NV/SA (Euronext: DEXB), controlled by the French and Belgian governments. Giza Singer Even is trying to interest investors to acquire Dexia Israel as a group or separately, and it is simultaneously in preliminary talks with a group for this purpose to examine ways to acquire the company, which has a complicated ownership structure with five kinds of shares.

 Dexia NV/SA, which owns 66% of the voting rights in Dexia Israel, has said in the past that it wants to sell the bank, which specializes in credit to municipalities. The media has reported talks with Israel Discount Bank (TASE:DSCT),  Mizrahi Tefahot Bank (TASE:MZTF), and Bank of Jerusalem (TASE: JBNK), but nothing ever came of them. Now Giza Singer Even is trying to arrange a deal.

Dexia Israel has NIS 770 million in equity and a market cap of NIS 510 million (a capital multiple of 0.66). It has a very high capital adequacy ratio of 20.6% (compared with an average of 9% for Israel’s other banks), but an acquisition involves first completing a number of steps.

Published by Globes [online], Israel business news – www.globes-online.com – on March 17, 2014

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