Discount Bank asks BoI to let it continue holding Cal

Discount Bank is asking the Bank of Israel and the Ministry of Finance to cancel its obligation to sell its 72% stake in credit card company Cal, after the Competition Authority failed to approve the existing sale deal for a year. CEO Avi Levi argues that the remaining 28% shareholder, First International Bank, can veto a flotation and opposes it, making an alternative sale unlikely within the remaining timeframe.

Discount Bank is attempting to reverse its obligation to sell its 72% stake in credit card company Cal-Israel Credit Cards. In a letter to the Bank of Israel and the Ministry of Finance, CEO Avi Levi requests that the requirement to divest Cal be canceled, allowing the bank to retain control. The move comes after a year-long delay in the Competition Authority's approval of the existing sale deal to a group comprising George Horesh's Union Investments and Harel Insurance Investments & Financial Services. Levi argues that First International Bank, which holds the remaining 28% of Cal, can veto a flotation of the company on the stock exchange and opposes such a move, making it unlikely that an alternative buyer can be found before the mid-2027 deadline imposed by legislation separating credit card companies from banks. Bank Hapoalim and Bank Leumi have already sold their holdings in rival credit card companies. No comment was forthcoming from Discount Bank.