The deal to sell a 25% stake in Phoenix Insurance Agencies, the agencies network of Israeli insurance and financial giant Phoenix Group (TASE:PHOE) is once again on the agenda. A source close to the matter has told “Globes” that Phoenix is in talks with two foreign investors about a partnership in Phoenix Insurance Agencies, in which Phoenix holds an 80% stake. Talks are in a very advanced stage with one of the investors.
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The emerging deal would give Phoenix Insurance Agencies a company valuation of $900 million – $1 billion. When Phoenix last reported about the potential deal in August, there were indications it might fetch a higher valuation of up to $1.2 billion.
As far as is known, the two foreign investors in talks with Phoenix Group do not include Jared Kushner’s Affinity Fund, the son-in-law of US presidential candidate Donald Trump. Last fall it looked as if Saudi-backed Affinity Fund was going to acquire a stake in Phoenix Insurance Agencies but after the outbreak of the war in October the talks were suspended.
In addition to Affinity, it was known that US funds Blackstone, Reverence Capital Partners and Searchlight had expressed interest in Phoenix Insurance Agencies as well as UK fund Pollen Street Capital and European fund Vitruvian Partners. Talks are ongoing with one of these investors while at the same time a foreign investor who is not included in this list approached the insurance group, and talks are also being held with them. The Phoenix hired investment bank Jefferies Group to find investors.
Phoenix Insurance Agencies is managed by Itzik Oz, who owns a 17% stake in the company. Moshe Sasson, Oz’s partner at Agam Liderim, one of the agencies included in the activity, holds a 3% stake.
In the first nine months of 2023, Phoenix Insurance Agencies had revenue of NIS 622 million, up 9% from the corresponding period of 2022.
Published by Globes, Israel business news – en.globes.co.il – on January 21, 2024.
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