Affinity Partners buys Phoenix stake

Affinity Partners has purchased a $128.5-million stake in Phoenix Holdings Ltd., marking the Saudi-backed firm’s second deal in Israel within a year. The acquisition is part of a larger agreement where international and Israeli investors will buy up to 21.5 per cent of Phoenix Holdings from Centerbridge Partners and Gallatin Point.

As per statements, Affinity Partners will acquire 4.95 per cent of Phoenix shares, with an additional 6.5 per cent sold to other international investors, including Lazard Asset Management.

Affinity has also committed to buying another 4.95 per cent of Phoenix pending regulatory approval. All transactions are at a price of net institutional sales (NIS) 37.50 per share.

Delek will repay a loan from its 2019 acquisition of Phoenix’s controlling stake and acquire 4.99 per cent of Phoenix at the same price, while Centerbridge and Gallatin will retain about 10 per cent of Phoenix.

Phoenix Holdings, a leading financial group in Israel for over 70 years, manages assets exceeding USD 130 billion and serves half of Israel’s adult population. The current management team, led by CEO Eyal Ben Simon and Chairman Benny Gabbay, will remain in place.

Jefferies acted as the global coordinator and financial advisor for the transaction, with legal counsel from Fischer (FBC & Co.), White & Case LLP, Gornitzky, and McDermott Will & Emery. Moreover, Mizrahi Tefahot Bank Ltd. served as the lender and agent for the deal.

Attribution: Business Wire, Bloomberg