The sale of Israel insurance and finance group The Phoenix Holdings (TASE: PHOE) to Abu Dhabi Development Holding Co. (ADQ) has fallen through. The Phoenix notified the Tel Aviv Stock Exchange this morning that the memorandum of understanding that it reported on December 13 last year, whereby US investment funds Centerbridge and Gallatin Point Capital were to have sold 25% of the group to ADQ, had been cancelled “because of the possible regulatory restrictions that would have arisen as a result of the purchase of the controlling core by the consortium.”
RELATED ARTICLES
Abu Dhabi state fund to buy control of Phoenix for NIS 2.3b
Will the regulators approve Phoenix’s Abu Dhabi deal?
Abu Dhabi – Phoenix deal augurs huge investment
Phoenix to lay off 120 in pension marketing division
According the The Phoenix’s announcement, the upshot of those restrictions would have been that some members of the consortium would not have been able to carry out further substantial investments in Israel. The company says, however, that the sale of the controlling stake could take place with a new structure. Members of the consortium from Abu Dhabi are still showing interest in becoming the controlling shareholders in The Phoenix.
The sides therefore reported that they were formulating a new agreement whereby the current controlling shareholders would sell part of their shares in The Phoenix, but would retain a holding of at least 30%, fully diluted. That is to say, they will relinquish control when the investors from Abu Dhabi become shareholders.
Centerbridge and Gallatin bought control of Phoenix in 2019 from Delek Group, controlled by Yitzhak Tshuva. Three years later, it was announced that the two funds would sell most of their stakes to ADQ for NIS 2.3 billion, which would yield them a return of some 150% on their investments. The deal price valued the company at NIS 9.2 billion, slightly less than its market cap at the time. Since then, The Phoenix’s market cap has climbed to NIS 9.8 billion.
Published by Globes, Israel business news – en.globes.co.il – on July 23, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
