Delek extends Phoenix sale deadline 45 days

The Gaza operation delayed the arrival of Jared Kushner in Israel.

The negotiations for the transfer of control in The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) from Delek Group Ltd. (TASE: DLEKG) to the Kushner family from the US have been extended for 45 days, sources inform "Globes." Following Operation Protective Edge, which delayed the handling of the deal for transferring control of Phoenix, the parties did not manage to complete a number of measures required in order to sign a binding agreement for the acquisition of a controlling interest (47%) in the insurance and financial group. The parties have agreed on a 45-day extension of the exclusivity period, according to the MOU they signed in early July.

On July 4, before the outbreak of fighting in the south, which slowed progress in the deal and delayed the arrival of Kushner family head Jared Kushner in Israel, a non-binding MOU was signed by Delek Group, controlled by Yitzhak Tshuva, and the Kushner family for the sale of control in Phoenix. The price for the deal was set in the MOU according to the Phoenix's equity at the end of 2013, with the addition of an unknown amount of interest. As of the date on which the MOU was signed, the price was NIS 1.7 billion, to be paid to Delek Group.

When the MOU was signed, it was stipulated that Delek would not discuss the sale of Phoenix with other parties, on condition that the buyers submit by the beginning of August an official request to Supervisor of the Capital Markets, Insurance, and Savings Dorit Salinger for a permit to own an insurance company. Jared Kushner recently arrived in Israel, met with Salinger, and submitted the request. At the same time as it made its request, and in anticipation of an initial indication on Salinger's part, the Kushner family is now performing due diligence for Phoenix. The request to the Ministry of Finance was filed by the family through Adv. David Hodak from the law firm of Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co., while due diligence is being performed by the KPMG Somekh Chaikin law firm. As far as is known, the Kushner family still wants the deal to go through.

Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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