IDB Development is reportedly planning to offload an additional 7.8% stake in Clal Insurance Enterprises through an auction process.
The auction, which attracted interest from underwriters such as Poalim IBI and Epsilon Underwriting, was conducted on last week, reported Israeli financial newspaper Globes.
As per the plan, IDB Development will divest its stake in a mixture of cash as well as series 9 and 14 long-term bonds.
As per the structure of the deal, IDB Development will offload a 2.6% stake of Clal Insurance in a cash transaction worth NIS82m ($23.71m).
It will divest 3.56% stake in lieu of series 9 bonds at a price of NIS0.75 per bond. A further 1.44% stake will be offloaded in exchange for series 14 bonds at NIS 0.78 per bond.
Prior to signing the current transaction, IDB Development directly owned 15.3% stake in Clal Insurance.
The publication added that IDB Development is invested in a further 15% of Clal Insurance through swap transactions, which it concluded last year.
Last week, IDB Development announced that it will sell 5% stake in Clal Insurance to Eyal Lapidot, CEO of Shikun & Binui Holdings.
The divestment is part of agreement IDB Development signed with the Capital Market, Insurance and Saving Authority of Israel.
As per the agreement, it is required to divest 5% stake of Clal Insurance by January next year and a further 5% by May 2020. It cannot retain more than 5% stake in Clal Insurance.