The board of directors of Migdal, Israel’s largest life insurance company, today voted to acquire the Binyan Insurance Company as a wholly-owned subsidiary in a transaction that will constitute the largest merger in Israel’s history. A controlling interest in both firms is owned by Africa-Palestine-Investments, Ltd.
Although the two companies will continue to operate separately, the merger as expected to increase the profitability of both firms by increased efficiency and reduction of administrative expenses. Migdal’s life insurance in force at the end of last year totaled 282,000,000 pounds ($94,000,000).
Migdal, which now owns seven percent of the shares of Binyan, will acquire the remaining 93 percent of the shares from Africa-Palestine Investments, which will receive in return 575,000 shares of Migdal stock. About 60 per cent of the shares of Migdal will be owned by Africa-Palestine.
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