New York-based private equity firm Warburg Pincus is in advanced talks with Israeli lender Bank Leumi to buy Israeli credit card company, Leumi Card.
Warburg Pincus will acquire control of Leumi Card at a company value of $659 million up to 30 percent more than the credit card company's equity.
Bank Leumi will receive a handsome price for Leumi Card and it is expected that a dividend of hundreds of millions of shekel will be distributed to Leumi Card's shareholders.
Bank Leumi is required to sell Leumi Card following the strum committee which recommended the separation of Israel's banks and credit card companies.