Shanghai-based Fosun International has agreed to buy 52 percent stake in Phoenix Holdings, Israel’s fourth-largest insurance provider by market value, in a deal worth up to US$489 million.
The stake is being purchased from Delek Group, which is shedding some assets in order to comply with a law that bars Israeli companies from owning financial services firms as well as industrial businesses, Bloomberg News reported.
Fosun will pay about US$461.6 million plus interest accrued before the deal’s closing date, with other adjustments possible, the report said, citing a regulatory filing.
The total payment could reach about $489 million, Fosun was quoted as saying.
Fosun, backed by Chinese billionaire Guo Guangchang, has been on an acquisition spree, buying insurers, energy companies and properties overseas in Australia, Italy and New York.
The company will invest in more insurers in Europe and the US in the coming two years, Guo told Bloomberg earlier in an interview in April.
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