Bank of Jerusalem renews bid for Isracard

Although it signed a new investment agreement with Delek Group and canceled its previous agreement, signed in October, with the insurance company Menora Mivtashem, the credit card company Isracard still has another suitor that has not given up hope: Jerusalem Bank.

Yesterday evening, the bank, headed by Yair Kaplan, sent an improved offer to take over Isracard, although Isracard’s board of directors examined its previous offer against Menorah Mivtashem’s, and preferred the latter.

Al-Quds Bank is proposing a takeover in a different form than the bids of Menorah Mivtashem and Delek Group, which is a stock exchange deal. Its latest offering improves the ratio in the stock swap to 1.15:1. In the offer, after the merger of Isracard into the bank, Isracard shareholders will own 60.1% of the combined company (compared to 59% in the previous offer). According to Bank of Jerusalem, its offer is 10% better than the Delek Group’s offer, and 28% better than the Menorah Mivtashem offer.

As in its previous presentation, Al-Quds Bank published a table showing the value of the share that Isracard shareholders should receive, with the addition of profits that will be distributed within the framework of the deal. The value is now estimated at NIS 16.2-17.4, an improvement from NIS 16-17.1 in the previous bid on December 27. This is compared to the value of 14.8 shekels per share in the Menorah Mivtashem tender, and 15.6 shekels per share in the tender agreement with the Delek Group, according to the Bank of Jerusalem.

Isracard’s board will likely have to consider the latest offer made by Quds Bank, but it is not clear whether it is enough to prompt it to cancel the agreement with Delek Group. If Isracard decides to move forward with Delek Group, Quds Bank may resort to legal action, or abandon its intention to acquire the company.

Published by Globes, Israel Business News – en.globes.co.il – on January 6, 2025.

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