Jared Kushner in talks to buy Phoenix stake

Affinity Partners, led by Donald Trump’s son-in-law Jared Kushner, is in talks to buy a 4.9% stake in Israeli insurance and finance group Phoenix Holdings (TASE: PHOE) from Centerbridge & Gallatin for NIS 450 million, valuing the company at NIS 10 billion. Centerbridge & Gallatin has a controlling 31.45% stake in Phoenix Holdings.

Affinity also wants an option to buy an additional 4.9% stake. Phoenix has a market value of NIS 9.8 billion, after its share price rose 6.7% on Monday.

The reason Affinity is seeking to buy the shares in two stages is that holding more than 5% of an insurance company requires regulatory approval from the Israel Securities Authority. And because Affinity is a “Saudi” fund, with most of its money raised in the Gulf, it is not certain that such approval will be granted. In addition, if a company wants to increase its holding beyond 15%, it will need further approval from the authority.

If any deal is reached, it would be Affinity’s second investment in Israel, after it bought a 15% stake last year in the Shlomo Group, a finance company run by Asi Schmeltzer. The original deal was supposed to be worth NIS 3.8 billion, but after the war broke out Affinity eventually invested $110 million, at a value of NIS 2.7 billion.

This article was published in Globes, Israeli Business News – en.globes.co.il – on July 15, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.