Sale worth €835m signals Generali’s withdrawal from Israeli market
Generali has agreed to sell its 69.1% holding in Migdal Insurance and Financial Holdings to Shlomo Eliahu, founder and controlling shareholder of the Israeli financial Group Eliahu. The sale is subject to approvals by the competent Israeli authorities.
The transaction is worth €835m and will be settled entirely in cash. It should generate a capital gain of around €103m, which will increase the liquidity of available capital as Generali withdraws from the Israeli market.
Israel is no longer part of the group’s expansion strategy, which is focused on “geographical markets with high growth potential and low insurance penetration, such as Eastern Europe, Asia and Brazil”.
Listed on the Tel Aviv stock exchange since 1997, Migdal Insurance and Financial Holdings operates in the life, health, pension funds and non-life insurance segments through Migdal Insurance Co.