Kushner family withdraws from Phoenix acquisition


The Kushner family was unable to agree on terms with Delek Group.

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“Since the Kushner group was unable to reach agreement with Delek Group Ltd. (TASE: DLEKG) on the binding terms for acquiring control in The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), the Kushner group has decided to withdraw the request submitted to the Commissioner of Insurance, Capital Markets, and Savings, ” parties on behalf of the Kushner family announced today.

In July 2014, the Kushner family, led by Jared Kushner, and Delek Group signed a non-binding letter of understanding for the sale of a 47% controlling share in Phoenix for $435 million (Phoenix’s equity, plus 5% annual interest up to the completion date for the deal). The exclusivity period agreed by the parties has since expired, and it was reported that the buyers were considering the addition of another investor to the deal.

The negotiations reached a dead end, however, and market sources predicted a month ago that the acquisition would not go through. The sources said that Delek Group would not agree to the Kushner family’s request for a 15% discount (more than NIS 250 million) on the acquisition price. In support of its request for a discount, the Kushner family cited the establishment of a workers’ committee at Phoenix, the burdensome regulation in the Israeli market, the findings in due diligence for Phoenix, and the current multiple at which the Phoenix share is traded on the Tel Aviv Stock Exchange (TASE).


Published by Globes [online], Israel business news – www.globes-online.com


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