Delek Group Ltd has agreed to sell a controlling stake in Phoenix Holdings Ltd, Israel’s fourth-largest insurance provider by market value, to China’s Fosun International Ltd (復星國際).
The Netanya, Israel-based holding company yesterday announced it would sell its entire 52 percent stake to a unit of the Shanghai-based conglomerate, valuing Phoenix at 3.45 billion shekels (US$902 million), according to an e-mailed statement. The price represents a 28 percent premium to Phoenix’s closing share price on Thursday, Delek said.
“It is an important strategic deal for the group and will add 1.8 billion shekels in cash to the company’s coffers,” Delek Group chief executive officer Asaf Bartfeld said in an e-mailed statement.“We are in a great starting position to implement our plans and undertake strategic investments in the international energy market, which will be synergistic and complementary to our activities.”
Delek needs to sell its stake in Phoenix to comply with a law passed in December 2013 that prohibits Israeli companies from owning financial services corporations as well as industrial businesses.
The Phoenix sale is subject to regulatory approval.
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