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ADQ is buying a controlling stake in Israel’s largest insurer from US funds Centerbridge and Gallatin Point.
Abu Dhabi Development Holdings (ADQ) to acquire control of Israel’s largest insurer israel phoenix insurance co., ltd. (grade:PHOE1; PHOE5). ADQ has signed a memorandum of understanding (MoU) with two US funds, Centerbridge and Gallatin Point Capital, to buy a 25%-30% stake in Phoenix. Gallatin will continue as the controlling core partner with a representative on the board. The deal values ​​Phoenix at NIS 9.2 billion, slightly below its current market capitalization of NIS 9.5 billion.
Phoenix CEO Eyal Ben Simon and chairman Benny Gabbay were both involved in the deal. The pair will buy a 2 percent stake in the company they have led for the past three years. As part of the agreement, they pledged to continue in their roles for the next five years. Centerbridge and Gallatin will likely retain a 6 percent stake in Phoenix and remain part of the controlling core.
Centerbridge and Gallatin acquired control of Phoenix in 2019 from Yitzhak Tshuva-controlled Delek Group. Two funds bought a 32.5 percent stake in Phoenix for NIS 1.6 billion. Phoenix also includes a range of companies such as Excellence Investment House and Gama Management & Clearing. The value of Phoenix has almost doubled since 2019, so the investments of Centerbridge and Gallatin stand to pay off handsomely.
The deal is subject to approval by Israel’s capital markets, insurance and savings regulators.
In February 2022, The Globe reported that UAE Crown Prince Mohamed bin Zayed was fulfilling a promise he made to then Prime Minister Benjamin Netanyahu in 2020 to invest 100 million in private Israeli companies. One hundred million U.S. dollars. Earlier this year, the UAE’s Mubadalah Fund bought Delek Drilling’s 22 percent stake in the Tamar offshore gas field for nearly $1.1 billion.
Published by Globes, Israel Business News – en.globes.co.il – December 13, 2022.
Eyal Ben Simon Photo credit: PR Inbal Marmary
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