Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Capital Ltd., has signed an agreement for the acquisition of 28.5% of Israel Phoenix Assurance (TASE: PHOE1;PHOE5) from Mayer Cars and Trucks Ltd., owned by Yaacov Shachar and Israel Kass.
Delek, controlled by Yitzhak Tshuva, now holds 61.5% of Phoenix, up from a 33% stake, which it had acquired from Shlomo Eliyahu for $198 million, at a company value of $602 million. Delek will pay $213 million for the 28.5%, reflecting a company value of $750 million.
Overall, Delek is paying $408 million for 61.5% of Phoenix, at an average company value of $663 million for both acquisitions. Delek Group CEO Asaf Bartfeld said that the acquisition of the Phoenix and the acquisition of the Republic Companies Group Inc. of the US two weeks ago, make Delek Capital, the financial arm of the group, led by Dan Gutman, one of the leading companies in its field in Israel.
Published by Globes [online], Israel business news - www.globes.co.il - on August 27, 2006
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