Delek's sale of Phoenix to Fujian Yango falls through

Yitzhak Tshuva

Delek Group cited difficulties in obtaining approvals from the Capital Market, Insurance and Savings Authority.

Almost a year after Delek Group Ltd. (TASE: DLEKG) signed the agreement for the sale of insurance company The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) to China's Fujian Yango, it was reported today that the deal had fallen through, as far as is known because of the difficulties experienced by Yango in obtaining the requisite approvals from Capital Market, Insurance and Savings Authority head Dorit Salinger.

Yango was to have bought the controlling stake in Phoenix (52%) for NIS 2.15 billion.

Delek Group, controlled by Yitzhak Tshuva, said today, "Because of the prolongation of the process of obtaining approval for transferring control of Phoenix to the Yango group, the parties agreed today on cancellation of the agreement in accordance with the mechanism stipulated within it, and each side has irrevocably and unconditionally waived all claims or damage in relation to the agreement."

Delek added: "The company has received new approaches from Israeli and foreign entities in connection with the sale of its holding in Phoenix, and it will continue to work towards the sale of its holding as required by law."

In the past year, Phoenix's share price has risen by 67%, giving it a current market cap of NIS 3.8 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on June 26, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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