JERUSALEM: Chinese investment firm Hang Lung Group denied it was in talks to buy a stake in Israeli insurance company Clal Insurance from holding company IDB Development, saying it was not interested in buying businesses outside of Hong Kong and China.
IDB said last week it was in advanced talks to sell a 30 percent stake in Clal Insurance to a group of investors based in China, a deal valued at 4.6bn shekels ($1.3bn).
IDB did not name the potential buyer but Israeli newspapers said it was Chinese investment firm Hang Lung Group .
“Hang Lung Group and Hang Lung Properties would like to set the record straight and state that the two companies have no knowledge of the aforesaid talks or deal,” it said in a statement. “They have neither approached IDB Development for the purchase nor have they had any intention to take up shares in Clal Insurance.”
“The market rumours are groundless and not based on any information from Hang Lung. Hang Lung Group and Hang Lung Properties are not interested in pursuing business opportunities outside Hong Kong and mainland China,” it said.
A Tel Aviv court set a late August deadline for indebted Israeli conglomerate IDB Holding, parent of IDB Development, to sell its stake in Clal Insurance.
IDB said it had received a number of other offers during the process to sell Clal Insurance.
Many of the companies IDB owns have been hit by slowing economic growth and increased competition.
IDB Holding owes bondholders 2bn shekels and IDB Development owes a further 5.8bn shekels.
REUTERS
