Migdal Insurance Holdings is suspending the distribution of an NIS 180 million dividend that was resolved upon two months ago, Ma'ariv reports. No new date has been set.
Migdal intended to distribute the money in order to reduce its shareholders' equity to a ceiling of NIS 1.6 billion, enabling Bank Leumi to retain its 20% stake in the company.
But Migdal now elects to postpone the dividend, hoping to meanwhile convince Supervisor of Banks Yitzhak Tal to reclassify Leumi's interest in Migdal.
The insurance company is currently defined as a non-banking asset, which imposes various restrictions on Leumi's holding.
Leumi also has 20% interests in two other non-banking assets, the holding company Africa Israel and in Israel Corporation.