Connect with us

Hi, what are you looking for?

Jewish Business News

Money

Kushner Family, Delek Back in Talks on Smaller Phoenix Deal


Market sources say Delek Group owner Yitzhak Tshuva is prepared to consider a smaller deal at the original valuation.

"A Film Unfinished" New York Premiere - Arrivals Jared Kushner / Geety

 

A week has gone by since Delek Group Ltd. (TASE: DLEKG) gave notification of the breakdown of the deal whereby insurance group The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) was to have been sold to the Kushner family of the US, and “Globes” has now learned that the two sides are back in talks on a new format for a smaller deal. Market sources estimated today that Delek Group controlling shareholder Yitzhak Tshuva was still demanding a price that would reflect the insurance group’s shareholders’ equity, but that he was prepared to reduce the scope of the deal, and thereby make it easier for the Kushner family to make the acquisition.

In the aftermath of the breakdown of the original deal, the Kushner family stated that it was withdrawing its application to the Director of Capital Markets, Insurance and Savings at the Ministry of Finance, but as far as is known the application has not so far been withdrawn.

Under a memorandum of understanding signed in July of this year, the Kushner family was to have paid Delek Group about $435 million for the 47% controlling stake in Phoenix. Delek Group needs to sell its stake in Phoenix because of the Economic Concentration Law, which forbids the simultaneous holding of substantial financial and non-financial corporations. The planned sale is also consistent with Delek Group’s aggressive moves over the past year to sell holdings that are not part of its core energy business.

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

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

Business

Now Platika joins and elite club of $10 billion plus Israeli firms.

Advertisement