Bank of Jerusalem Offers Improved Share Swap Deal for Isracard Acquisition

Bank of Jerusalem has renewed its bid for Isracard with a new offer of a share swap deal at a ratio of 1.15:1. The bank claims its offer is better for Isracard shareholders than the agreement signed with Delek Group, with a value per share estimated at NIS 16.2-17.4. The Isracard board will likely consider the offer, but it's unclear if it will cancel the agreement with Delek Group.

The race to acquire Isracard (TASE: ISCD) continues to intensify, with the Bank of Jerusalem (TASE: JBNK) making a renewed bid for the Israeli credit card company. The bank has proposed a share swap deal at a ratio of 1.15:1, claiming that it offers better value to Isracard shareholders than the agreements signed with Delek Group (TASE: DLKG) and Menora Mivtachim (TASE: MMHD) [1][2].

Isracard's board of directors, chaired by Tamar Yassur, is set to discuss the latest offer later this week [1]. The bank's revised proposal values Isracard at between NIS 3.8 billion and NIS 4.2 billion, up from its previous bid of between NIS 3.2 billion and NIS 3.4 billion [1][2]. This new offer represents a significant increase from Delek Group's offer of a controlling stake at a company valuation of NIS 3.56 billion and Menora Mivtachim's agreement to buy a controlling stake at a company valuation of NIS 3.15 billion [1].

The Bank of Jerusalem's enhanced proposal comes as the race to acquire Isracard heats up. Last week, Delek Group increased pressure on Isracard's board by turning up the heat on the company to accept its offer [1]. Menora Mivtachim, too, has already signed a deal to buy control of Isracard [1]. It remains unclear whether Isracard's board will cancel its agreement with Menora Mivtachim and accept the Bank of Jerusalem's latest offer [1].

The Bank of Jerusalem's renewed bid for Isracard underscores the significance of the Israeli credit card market and the competitive landscape among the country's financial institutions. With each bid, the stakes continue to rise, and the eventual outcome will have far-reaching implications for both the acquiring bank and Isracard's shareholders.

[1] Globes. (2024, December 29). Bank of Jerusalem raises bid to merge with Isracard. Retrieved from https://en.globes.co.il/en/article-bank-of-jerusalem-raises-bid-to-merge-with-isracard-1001498004
[2] The News Time Israel. (2024, December 29). Bank of Jerusalem raises bid to merge with Isracard. Retrieved from https://thenewstimeisrael.com/bank-of-jerusalem-raises-bid-to-merge-with-isracard/