Delek Group Ltd. (TASE: DLEKG) today reported to the Tel Aviv Stock Exchange (TASE) that the deadline for its sale of the The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) insurance company to private Chinese company Yango Investment had been extended from February 22 to March 31. If the conditions for the deal are not fulfilled by that date, either of the parties is entitled to notify the other than it has been called off. The agreement stipulates that no sanctions will apply to either party if the deal is canceled.
Delek is required to sell Phoenix under the Promotion of Competition and Reduction of Concentration Law. The two companies have conducted negotiations since June 2016, and signed a binding agreement on October 22, 2016. Under the agreement, Delek will sell its entire 52.3% controlling interest in Phoenix to the Yango for NIS 1.95 billion, plus 4.75% annual interest starting on January 1, 2017 until the deal is finally closed.
When the agreement was signed, Delek stated, "The agreement includes a number of suspending conditions, including approval from government agencies, among them a control permit from the Ministry of Finance Commissioner of Capital Markets, Insurance, and Savings, approval by the Israel Securities Authority, approval from the TASE, and the absence of a material adverse event (MAE) in Phoenix's business before the deal is completed."
Published by Globes [online], Israel Business News - www.globes-online.com - on February 19, 2017
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