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Israel's Bank Hapoalim to buy $34 mln stake in NuVerse Advisors

JERUSALEM - Bank Hapoalim POLI.TA, one of Israel's top two banks, said on Sunday it signed an agreement to buy a controlling stake in New York-based wealth manager NuVerse Advisors for $34 million as it continues to expand globally.

Hapoalim, Israel's largest bank in terms of assets, said in a statement it was buying a 50.01 stake in NuVerse, which offers wealth management services to high net worth individuals in the United States, Asia and Latin America.

It said the acquisition would be complementary to Hapoalim's wealth management business, which is offered through a network of banks, branches and representative offices in more than 20 countries in Europe, Asia and North and South America.

Hapoalim said assets under its management have grown to $18 billion.

‘The acquisition...is another clear indication of our ongoing transformation into a global bank,’ said Hapoalim Chairman Dani Dankner in the statement.

With Israel too small a market for further growth, Hapoalim has turned globally and has recently bought stakes in banks in Turkey and other countries. It also has sold a 4 percent equity stake to US hedge fund York Capital in an effort to further expand outside of Israel.

Its shares were up 1.5 percent at 16.54 shekels at midday in Tel Aviv, double the gains on the broader bourse.

NuVerse was founded in 2001 after the sale of Republic New York Corp, parent of Republic Bank of New York, to HSBC Holdings for $10 billion.

One of NuVerse's founders, Dov Schlein, had served as chairman and chief executive of Republic.