New Times, Rongtong Joining Haifeng in Clal Insurance Purchase

New Times to get 71%, Rongtong 16.5%, Haifeng 12.5%.

Hong Kong’s JT Capital Management has revealed the group of investors seeking to buy control of Israel’s Clal Insurance Enterprises Holdings, Clal’s parent company IDB Development said Sunday.

Businessman Li Haifeng, who owns JT Capital, would have a 12.5% stake in the group of investors, Chinese financial institution New Times Trust Co would take 71% and Rongtong Fund Management Co of China would hold 16.5%.

The investors provided documents demonstrating financial means of at least $700 million.

In August, Israeli conglomerate IDB Development said it had agreed to sell a third of Clal to JT Capital for 1.472 billion shekels ($415 million) to meet a court deadline for settling its debts.

The agreement between JT Capital and IDB stated that within 45 days the potential buyer would present details of the group of investors as well as documents attesting to their financial capabilities.

An Israeli court has given IDB Holding, parent of IDB Development, until Oct. 20 to submit a debt settlement as Chairman Nochi Danker fights to keep control of the company and prevent a takeover by bondholders. The court will make a final ruling on Nov. 25.

Many of the companies IDB owns have been hit by slowing economic growth and increased competition. IDB Holding owes bondholders 2 billion shekels, and IDB Development owes a further 5.8 billion.

Bloomberg