Shekel collected premiums totaling NIS 1 billion in 2007.
Israel Phoenix Assurance (TASE: PHOE1;PHOE5) has signed a memorandum of understanding with Shekel Group founder and chairman Meir Uzan to acquire the company for NIS 130 million. Shekel manages pension, provident and further training funds for 70,000 employees in 2,500 companies and enterprises. The company manages NIS 7 billion in assets and collected a total of NIS 1 billion in premiums in 2007.
Uzan, who also serves as chairman of the Israel pension fund management forum, will stay on as chairman for a further five years, earning a total salary of NIS 2 million plus a package of bonuses and warrants.
Phoenix, which is controlled by Delek Group Ltd. (TASE: DLEKG), said it would carry out a due diligence review in the near future ahead of the signing of a detailed agreement, and that the deal would be subject to the requisite regulatory approvals.
Published by Globes [online], Israel business news - www.globes.co.il - on February 24, 2008
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