A consortium of funds led by Abu Dhabi Development Holding Company (ADQ) has terminated the deal to purchase a controlling stake in Israeli insurer Phoenix Holdings.
The term sheet was cancelled due to anticipated regulatory restrictions on the deal that would have likely prevented numerous consortium members from making additional significant investments in Israel.
Phoenix is a publicly traded company on the Tel Aviv stock exchange with a $2.85bn (NIS10.28bn) market value.
The controlling shareholders in a letter to Phoenix said: “The parties are finalising an agreement pursuant to which the controlling shareholder will sell the consortium shares in the company while still retaining at least 30% of the fully diluted shareholding of the business and thus the control stake.
“It is contemplated that those shares would be sold at the same price per share as that contemplated under the original transaction.”
Centerbridge Partners and Gallatin Point Capital first announced plans to divest a stake of up to 25%-30% in Phoenix Holdings to UAE-based funds in December 2022.
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According to a Bloomberg report, the deal was valued at approximately $855m.
Centerbridge Partners and Gallatin Point Capital together hold nearly 33.44% of the stake in Phoenix.
Founded in 2018, ADQ is an Abu Dhabi-based investment and holding company with interests cut across several industries including mobility and logistics, financial services, healthcare and life sciences, food and agriculture, and energy and utilities.