[Kabar-indonesia] Sampoerna buys 20 pct of Israel's Harel Insurance

[Joyo at aol.com]

Sampoerna buys 20 pct of Israel's Harel Insurance

JERUSALEM, November 2 (Reuters) - The Sampoerna Group has
bought 20.2 percent of Israel's Harel Insurance Investments
for $192.7 million, valuing the entire insurer at $954
million, the companies said on Wednesday.

The Sampoerna Group, controlled by Indonesia's Sampoerna
family, bought the stake through a Singapore-based holding
company. Harel is Israel's third-largest insurance group,
with a 17 percent market share.

Indonesia and Israel do not have diplomatic relations.

Under the deal Sampoerna acquired 10.1 percent of Harel from
Israel Discount Bank , Israel's third-largest bank, and
another 10.1 percent from the Hamburger family, which
controls Harel.

Discount also has a put option to sell its remaining 5.8
percent stake in Harel in seven months to Sampoerna and the
Hamburger families.

The sale by Discount Bank was part of a capital market
reform enacted last year aimed at increasing competition in
the country's financial sector.

As part of the reform, Discount was required to reduce its
stake in Harel below 10 percent, to be allowed to operate in
insurance and pension distribution.

Gabi Perel, the Sampoerna family's representative in Israel,
will be made vice-chairman, while Ben Hamburger, the
Hamburger family liaison with the Sampoerna family, will act
as Harel's vice-president.

Shares in Harel closed up 1 percent at 212.6 shekels
outpacing modest gains in Tel Aviv's benchmark index
<.TA100>.

The Sampoerna family originated in China and migrated to
Indonesia. The family is among the wealthiest in southeast
Asia, having sold a controlling stake in Indonesia's third-
largest cigarette maker to Philip Morris International, the
tobacco arm of Altria Group Inc. .

The Sampoerna Group is active in cellular communications,
natural resources, real estate and tourism.

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Joyo Indonesia News Service
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