19 August 12 09:33–On Thursday, Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), a subsidiary of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, signed an agreement with National Indemnity Company, a subsidiary of Berkshire Hathaway Inc. (NYSE: BRK.A), controlled by Warren Buffet, for the sale of wholly-owned subsidiary Clal US Holdings Inc., which owns Guard Insurance Group, Clal Insurance announced today. The price is $221 million in cash and the release of a $48 million guarantee given by Clal Insurance to secure a loan to Clal US Holdings from a foreign bank.
In April, Clal Insurance opened talks for the sale of Guard Insurance at a value of $270 million, but as “Globes” reported in June, the prospective buyer asked for a reduction in the price.
“There is an impression that foreign potential buyers read the Israeli press, and felt that Clal Insurance and IDB were under pressure, and that they could buy Guard at a substantially lower price than it is worth,” sources at Clal Insurance said.
Clal Insurance CEO Shy Talmon said, “Clal Insurance has completed a period of several years of successful investment in Guard. Five years ago, Clal Insurance invested $107 million in Guard, and it is now selling the company for $221 million. We see interest by a well-known buyer such as Berkshire Hathaway as proof of our success in managing Guard. Clal will now focus on building its business in Israel.”…Read More>>