Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has announced that it has canceled the non-binding memorandum of understanding (MOU) to sell the The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) insurance companty that it signed two weeks ago with US company AmTrust Financial Services Inc. (Nasdaq: AFSI).
A notification to the Tel Aviv Stock Exchange, said that both Delek and AmTrust has signed letters cancelling the MoU. It added that, "The letters of cancellation set among other things that the period of exclusivity had ended but both companies will discuss alternatives for the deal, without exclusivity being given."
On February 18, Delek announced it had signed a non-binding MoU with AmTrust to sell its stake in the phoenix for NIS 1.8 billion. This development came just two days after it has cancelled the deal to sell the Phoenix to China's Fosun Group.
Last September, Delek sold its 60% stake in US company Republic Insurance to AmTrust for $140 million (about NIS 540 million).
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2016
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