Psagot, controlled by chairperson Rani Zim, will record a capital gain of NIS 120 million and equity growth of about NIS 350 million from the NIS 310 million sale of its portfolio management and ETF activity to The Phoenix Holdings (TASE: PHOE).
Psagot added that the activities being sold include assets under management worth NIS 17.1 billion and that after the sale it will retain assets under management worth about NIS 30 billion.
After the completion of the deals, Psagot is expected to repay a commitment of NIS 255 million taken by subsidiary Psagot Mutual Funds to finance the purchase of these activities about 18 months ago, and to remain without financial debt, while increasing the cash to a balance of approximately NIS 165 million.
Psagot bought the funds and portfolio managements activity from Altshuler Shaham for NIS 405 million through Value Capital which changed its name to Group Psagot for Finance and Investments (GPST).
Published by Globes, Israel business news - en.globes.co.il - on January 19, 2023.
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