JERUSALEM, Aug 17 (Reuters) - Israel Discount Bank has received regulatory approval to start selling off its 26.4 percent stake in First International Bank of Israel (FIBI) as it cuts non-strategic holdings.
The Bank of Israel's banking supervisor and Israel's anti-trust commissioner approved the move, as well as FIBI's plan to pay a dividend of 800 million shekels ($211.6 million), Discount said in a statement to the Tel Aviv Stock Exchange on Tuesday.
Discount, Israel's third-largest bank, has said its aim is to reduce its stake -- which it has held since 1983 -- to below 5 percent. Regulators have given Discount until 2017 to do so.
At the same time, FIBI will be required to consolidate its two share listings, which would enable it to join the blue-chip Tel Aviv 25 index.
After the dividend is paid, in which 200 million will go to Discount, the bank will initially sell a 6 percent stake. By the end of 2013, Discount will no longer be allowed to place directors on FIBI's board.
FIBI is Israel's fifth-largst bank.
(Reporting by Steven Scheer; Editing by Michael Shields) ($1=3.780 Israeli Shekel) Keywords: DISCOUNT FIBI/ (steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters Messaging: steven.scheer.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Bank of Israel's banking supervisor and Israel's anti-trust commissioner approved the move, as well as FIBI's plan to pay a dividend of 800 million shekels ($211.6 million), Discount said in a statement to the Tel Aviv Stock Exchange on Tuesday.
Discount, Israel's third-largest bank, has said its aim is to reduce its stake -- which it has held since 1983 -- to below 5 percent. Regulators have given Discount until 2017 to do so.
At the same time, FIBI will be required to consolidate its two share listings, which would enable it to join the blue-chip Tel Aviv 25 index.
After the dividend is paid, in which 200 million will go to Discount, the bank will initially sell a 6 percent stake. By the end of 2013, Discount will no longer be allowed to place directors on FIBI's board.
FIBI is Israel's fifth-largst bank.
(Reporting by Steven Scheer; Editing by Michael Shields) ($1=3.780 Israeli Shekel) Keywords: DISCOUNT FIBI/ (steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters Messaging: steven.scheer.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.