Affinity Partners, led by Donald Trump's son-in-law Jared Kushner, is in talks to buy a 4.9% stake in Israeli insurance and finance group The Phoenix Holdings (TASE: PHOE) from Centerbridge and Gallatin, for NIS 450 million, at a company valuation of NIS 10 billion. Centerbridge and Gallatin have a controlling 31.45% stake in the Phoenix Holdings.
Affinity also wants an option on an additional 4.9% stake. The Phoenix has a market cap of NIS 9.8 billion, after its share price rose 6.7% today.
The reason that Affinity is seeking to buy the shares in two stages is that in order to hold more than 5% of an insurance company, regulatory approval is required from the Israel Securities Authority. Because Affinity is a "Saudi Arabian" fund, with most of its money raised in the Gulf. it is not certain such approval will be granted. In addition, if a company wants to take its holding above 15%, it will need further approval from Authority.
If any deal is concluded this would be Affinity's second investment in Israel, after it bought a 15% stake last year in the Shlomo Group vehicle and financing company, managed by Asi Shmeltzer. The original deal was meant to be at a company valuation of NIS 3.8 billion but after the outbreak of the war Affinity ultimately invested $110 million, at a company valuation of NIS 2.7 billion.
Published by Globes, Israel business news - en.globes.co.il - on July 15, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.