Israel’s mammoth Clal Insurance and Finance conglomerate will invest NIS 100 million in the Esh group for the establishment of its new Israeli bank, ‘Esh’, the bank announced this week.
The shareholders will take a 4.99 percent stake in each of the group’s companies, the bank and the technology company, according to the Globes business news site.
“We think that this is a different bank on the Israeli landscape, one that will generate value for its customers, and that the investment will yield a higher return than the alternatives to Clal Insurance and Finance’s saver,” said Barak Benski, senior vice president and investment manager at Clal Insurance Enterprise Holdings.
“We welcome Clal Insurance and Finance, which will join the existing shareholders, who have so far invested over NIS 100 million,” added Esh Group CEO Yuval Aloni.
“After the deal is completed, investment in the Esh Group will total more than NIS 200 million. This investment will enable us to develop the product in accordance with the group’s vision before we enter the market.”
Aloni, Nir Zuk, Alex Liverant and Alon Shine comprise the shareholders who received the license to set up, manage and control the new bank.
Former Israel Securities Authority chairperson Shmuel Hauser has been appointed chairperson of the bank, with Kobi Malkin serving as CEO. Malkin is the former CEO of Bank Massad and Bank Otzar HaHayal.
Former Bank of Israel deputy governor Dr. Nadine Baudot-Trajtenberg will serve as deputy chairperson.
