Investment bank J.P. Morgan has been hired by Israel Discount Bank (TASE: DSCT) and First International Bank of Israel (TASE:FTIN1; FTIN5) to promote the sale of Israel Credit Cards (ICC) – CAL. The bidding war for control of rival credit card company (TASE: ISCD), which seems to have been won by Delek Group (TASE: DLEKG), has boosted interest in ICC-CAL as an attractive asset.
ICC-CAL management, headed by CEO Levy Halevy, recently undertook a tour of presentations in London, where it became clear that there was a high level of interest in the Israeli credit card company. The Israelis were surprised by the depth of familiarity of international investment bodies with ICC-CAL, and it was clear that some of the foreign institutions arrived after extensive preparatory work, a testament to their seriousness.
ICC-CAL's owners plan opening an "information room" in the near future, to allow access to additional parties who may be interested in acquiring the credit card company, with prominent players in the fields of finance and retail targeted. According to the 'Strum Law' that has forced banks to separate from credit card companies and more recent legislation passed by the Knesset last year, the deadline for the sale of ICC-CAL has been extended to May 2027. If the sale does not go through, Discount (which holds 72% of ICC-CAL's shares) will be able to promote an IPO on the Tel Aviv Stock Exchange (TASE) until May 2028.
"Globes" has learned that the valuation that ICC-CAL's owners are seeking could reach NIS 4 billion – higher than the NIS 3.56 billion valuation achieved in the sale of the controlling stake in Isracard to Delek Group, even though Isracard is Israel's biggest credit card company, with a 48% market share. The main reasons for this high valuation are ICC-CAL's high profitability in the credit card industry, as well as the technologies it has developed in the field, which allow innovative credit card operations.
Among the Israeli companies expected to show interest in the acquisition, alongside foreign investors, is the Menora Mivtachim (TASE: MMHD) insurance group, which recently came close to acquiring control of Isracard, but ultimately succumbed to a higher offer from Delek. Menora might join forces with foreign investment funds or international investment entities and become part of a controlling stake in ICC-CAL. Menora Mivtachim declined to comment. El Al Israel Airlines (TASE: ELAL), which also bid for Isracard, could also join the race to buy ICC-CAL.
Published by Globes, Israel business news – en.globes.co.il – on January 22, 2025.
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