Delek exits Phoenix with $32 million profit in just four months
Delek exits Phoenix with $32 million profit in just four months
Tshuva's group capitalizes on rising valuation, selling its 4.9% stake for NIS 580 million.
Yitzhak Tshuva's Delek Group is divesting its 4.9% stake in Phoenix Holdings just four months after acquiring it. Initially, Tshuva sought to sell two-thirds of the shares, but high demand led Delek to sell its entire holding for NIS 580 million ($150 million). This transaction generated a swift and significant profit of NIS 120 million ($32 million), capitalizing on the rise in Phoenix's valuation from NIS 9.2 billion at the time of purchase in July to a record NIS 11.7 billion.
The sale was executed through a share distribution managed by investment bank Jefferies in collaboration with Leader. Delek originally acquired the shares from the investment funds Centerbridge and Gallatin by converting a loan it had extended to the funds, supplemented by cash.
Separately, Centerbridge and Gallatin sold an additional 5% of Phoenix shares to institutional investors in the U.S. and Israel for approximately NIS 600 million, split evenly between both markets. Phoenix now operates without a controlling interest, as the two funds have divested almost all of their holdings, retaining a 10.6% stake, with 5% subject to a purchase option held by Jared Kushner's Affinity Fund.
Both Delek's shares and those of the investment funds were sold at a 4% discount to the market price, highlighting investor interest in Phoenix amid its rising valuation.
