Jared Kushner's Saudi backed firm paying $128 million for nearly 5% stake in Israel’s Phoenix
Jared Kushner's Saudi backed firm paying $128 million for nearly 5% stake in Israel’s Phoenix
In total, 21.5% of Phoenix Holdings, a leading Israeli financial group, are being sold by Centerbridge Partners and Gallatin Point. Kushner’s Affinity Partners further committed to acquiring an additional 4.95% of Phoenix subject to receipt of regulatory approval.
International and Israeli investors have agreed to acquire up to 21.5% of Phoenix Holdings, a leading Israeli financial group, from Centerbridge Partners and Gallatin Point.
The investments involved an agreement for the sale of 4.95% of Phoenix shares to Jared Kushner’s Affinity Partners, while an additional 6.5% of the shares will be executed in off-market blocks to various international institutional investors, including Lazard Asset Management. Affinity Partners has further committed to acquiring an additional 4.95% of Phoenix subject to receipt of regulatory approval. All transactions were at a price of NIS 37.50 per share.
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Jared Kushner and Yitzhak Tshuva.
(Photos: Eyal Tueg and U.S. Embassy Jerusalem - David Azagury)
Concurrently, various arrangements between the funds and Delek, controlled by Yitzhak Tshuva, are being closed out. This includes paying off a loan agreement stemming from the 2019 acquisition of the controlling stake from Delek. As part of this process, Delek will also acquire a 4.99% stake in Phoenix at the agreed rate of NIS 37.50 per share.
Centerbridge and Gallatin Point, who acquired control of Phoenix in 2019, will remain with approximately 10.0% after effectuating these transactions.
Phoenix is valued at 9.4 billion shekels (approximately $2.6 billion) in the deal, meaning Affinity will be paying around $128 million for its stake.
The Phoenix stated that it will continue under the current management, led by Eyal Ben Simon as CEO and Benny Gabbay as Chairman.
Ben Langworthy (Centerbridge) and Lee Sachs (Gallatin) said: “The management team and employees of the Phoenix are among the best in the industry. We have been proud to work alongside them as they transformed Phoenix into one of the nation’s leading financial institutions. We are excited that these transactions will further diversify the shareholder base of Phoenix. These transactions represent a significant vote of confidence in Phoenix and Israel, and the company’s excellent work over the past several years. We look forward to continuing to support the management team as they lead Phoenix to even greater heights.”
Jared Kushner stated: “We are excited to become significant shareholders in Phoenix. Affinity is long-term bullish on Israel because it is one of the fastest growing countries in the OECD, both in terms of population and GDP growth. We look forward to working closely with the company as it continues its journey toward becoming a globally recognized financial services provider.”
Eyal Ben Simon and Benny Gabbay added: “Today signifies a significant milestone for Phoenix. Alongside Centerbridge and Gallatin, we have laid the strategic groundwork that has shaped Phoenix into a leading financial group in Israel, attracting interest from top international investors. We look forward to continuing to develop and grow the company, bringing it to new heights for the benefit of all our shareholders.”
Jefferies acted as sole global coordinator, bookrunner and financial advisor to Centerbridge and Gallatin Point on the transaction. This is the second transaction that Jefferies has led in Israel during the war, the first being the sale of 5% of the shares of the Tel Aviv Stock Exchange to Bill Ackman.
