Clal Insurance sells its holding in Alrov Real Estate to Canada Israel for about NIS 400 million

Clal Insurance sells its holding in Alrov Real Estate to Canada Israel for about NIS 400 million. Clal owns 12.6% of Alrov Real Estate, which is traded on the stock exchange at a value of NIS 2.9 billion.
In the last two years, Akirov has acquired about 5% of all holdings - Clal Insurance's parent company - and has become a stakeholder in it. The share purchase was made while Clal owned 12.6% of the Alrov real estate group controlled by Akirov, and waged a stubborn struggle to finance the operations of its subsidiary, Luca, which owns hotels in Europe.
Over the years, Alrov Real Estate has provided NIS 2.4 billion in financing to Lucca. Despite the fact that Georgi is a partner in Lucca, he has never paid his share - NIS 350 million - nor has he paid his share in interest.
Clal claimed that the public Alrov allegedly subsidized the Akirov family, in a deal that was never approved as a stakeholder deal - and opposed the financing. The opposition led to the deterioration of relations and a passionate confrontation between Akirov and Yossi Dori, Clal's chief investment officer. It is estimated in the market that the confrontation with Dori was one of the reasons why Akirov decided to purchase 5% of the total, with an investment of NIS 170 million.
Akirov's acquisition joins the acquisitions of Mori Arkin (7%) and Eyal Lapidot (4.2%) in the company and their activism - which shook Clal Insurance last year. It began with their demand to fire CEO Yoram Naveh; he continued to hold meetings with the chairman, Danny Naveh, to advance the removal of the CEO;
Danziger stated that Chairman Naveh was not affected by the minority shareholders, but there was a flaw in his conduct as there was a conversation about the dismissal of CEO Naveh even before the issue came up on the board. Danziger also disliked the intervention of minority shareholders in the company, including Akirov, and ruled that it was allowed to talk to shareholders, but they were not allowed to influence the way the company was run.
Danziger also referred to what was called the "Dori case." Two directors in Clal Holdings received a binder that allegedly contained information about Dori's conduct. One of them was former judge Varda Alsich. The other is Chairman Naveh - who has since retired. The preparation of the "case" has been attributed to Akirov, but he denies the existence of such a "case".
Following the confrontation, Clal Insurance decided that all decisions regarding Alrov Real Estate would be referred to external consultants.