Israeli conglomerate Delek Group Ltd. announced today that it had signed an agreement for the sale of its 52.3 precent holding in insurance group Phoenix Holdings Ltd. to China’s Fujian Yango Group Co, unit Yango Investment PTE. Ltd., for $516 million (NIS 1.948 billion), in cash to be paid on completion of the deal. The agreement values Phoenix at $981 million (NIS 3.7 billion).
Delek, Led by Itzhak Tshuva, is selling control of Phoenix as part of its continuing efforts to focus on its energy business.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
In July, it was reported that Delek Group had signed a non-binding memorandum of understanding with Yango for the sale of its Phoenix stake for not less than $490 million (NIS 1.85 billion).
Delek Group CEO Asaf (Asi) Bartfeld said, “We are happy at the signing of the deal, and hope that Yango will receive all the required approvals to enable the deal to be completed.”
Privately held, Fujian Yango is not active in insurance and finance. It seems that Yango intends to enter this field through the acquisition of Phoenix.
Phoenix, headed by Eyal Lapidot, is one of the five largest insurance groups in Israel. It has been controlled by Delek Group since 2006. Even if it were not for its strategy of focusing on its energy business, Delek Group would in any case have had to sell Phoenix within the next few years because of the Law for Promotion of Competition and Reduction of Concentration, which places restrictions on simultaneous ownership of significant financial and non-financial companies.
The sale still requires approval by Supervisor of Capital Markets, Insurance and Savings, Dorit Salinger.
Delek had previously several attempts to sell Phonix, one of them was to China’s Fosun International for $477 million (1.8 billion shekels). At the end the sides were not met.
In March, U.S. insurer AmTrust Financial Services, signed a non-binding agreement to buy Phoenix, but it was canceled by both sides.
READ MORE: Phoenix
Israeli conglomerate Delek Group Ltd. announced today that it had signed an agreement for the sale of its 52.3 precent holding in insurance group Phoenix Holdings Ltd. to China’s Fujian Yango Group More…
Delek Group said it signed a non-binding deal to sell its insurance unit Phoenix Holdings to China’s Fujian Yango Group for at least 1.85 billion shekels ($481 million) in cash, according to a notification More…
Just 24 hours after the cancellation of the sale of Israeli insurance unit Phoenix Holdings to China’s Fosun Group, Delek Group Ltd., led by Yitzhak Tshuva, has announced that it has signed a non-binding More…
Yitzhak Tshuva‘s Delek Group said on Sunday it had agreed to sell its 52.31 percent stake in insurer Phoenix Holdings, Israel’s fourth-largest insurance provider by market value, to China’s Fosun More…
– Market sources say Delek Group owner Yitzhak Tshuva is prepared to consider a smaller deal at the original valuation. – A week has gone by since Delek Group Ltd. (TASE: DLEKG) gave notification of More…
Israeli conglomerate that owns gas stations and major stakes in the Tamar and Leviathan natural gas fields can’t seem to get The Kushner Group to sign on the dotted line for its Phoenix stake. There More…
– The Kushner family was unable to agree on terms with Delek Group. “Since the Kushner group was unable to reach agreement with Delek Group Ltd. (TASE: DLEKG) on the binding terms for acquiring control More…
