Phoenix Holdings, Israel’s largest insurance and finance company (TASE: PHOE), informed the Tel Aviv Stock Exchange (TASE) that its controlling shareholders Centerbridge Partners and Gallatin Point (31.45%) are selling most of their stake. Centerbridge and Gallatin are selling 21.5% of Phoenix for NIS 2 billion to other investors at NIS 37.5 per share, in return for a healthy return on their investment.
Phoenix Group shares rose 6.7 percent yesterday after news of the deal leaked, including that Jared Kushner’s Affinity Partners and Yitzhak Tshuva were among the investors. Sources told Globes that investment bank Lazard is buying an estimated 2 percent to 3 percent of Phoenix, Briarwood Chase Capital Management will retain 1.55 percent, and Jewish-American businessman Henry Soika, the founder of Highbridge Capital who resigned from the board of Columbia Business School over the school’s inadequate response to anti-Semitism, is buying several percent. Together, the three investors will own a 6.5 percent stake in the Israeli insurance company.
“Saudi money”
Among the buyers was reported yesterday to be Affinity Partners, headed by Jared Kushner, son-in-law of former US President Donald Trump, which is buying a 4.95% stake and an option for another 4.95% if it gets approval from the Israel Securities Authority to keep more than 5%. But with most of Affinity’s money coming from Saudi Arabia, there are concerns that approval may not come any time soon.
Former controlling shareholder Yitzhak Tshuva is also expected to return to Phoenix through his holdings in Delek Group (TASE: DLEKG). Tshuva is expected to receive a 4.99% stake through a share purchase for NIS 220 million and receive the rest of the stake as repayment of a NIS 250 million loan.
Upon completion of the transaction, Centerbridge and Gallatin Point, which invested in Phoenix in 2019, will retain a 10% stake. Jefferies acted as sole global coordinator, bookrunner and financial advisor to Centerbridge and Gallatin Point on the transaction.
“Phoenix’s management team and employees are among the best in the industry,” said Ben Langworthy (Centerbridge) and Lee Sachs (Gallatin). “We are proud to work with them as they transform Phoenix into one of the nation’s leading financial institutions. We are excited that these transactions will further diversify Phoenix’s shareholder base. These transactions represent a significant vote of confidence in Phoenix, Israel, and the excellent work the company has done over the past several years. We look forward to continuing to support the management team as they lead Phoenix to greater heights.”
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“We are excited to become a significant shareholder in Phoenix,” said Jared Kushner (Afinity). “Afinity is bullish on Israel for the long term as it is one of the fastest growing countries in the OECD, both in terms of population and GDP growth. We look forward to working closely with the company as it continues its journey towards becoming a globally recognized financial services provider.”
“Today marks an important milestone for Phoenix,” said Phoenix CEO Eyal Ben Simon and Chairman Benny Gabbai. “Together with Centerbridge and Galatin, we laid the strategic foundation that has shaped Phoenix into a leading financial group in Israel, attracting the attention of major international investors. We look forward to continuing to develop and grow the company, taking it to new heights for the benefit of all our shareholders.”
This article was published in Globes, Israeli Business News – en.globes.co.il – on July 16, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
