WeSure Insurance Acquires Controlling Stake in Altshuler Shaham

WeSure Globaltech, an insurance company controlled by Emil Vinchel and Zvi Barak, is set to acquire a controlling stake in the pension and provident fund company Altshuler Shaham Finances. The deal, valued at approximately 1 billion shekels, is expected to be finalized by the end of this week, before the Yom Kippur holiday.

Under the agreement, WeSure will hold a 45% stake in Altshuler Shaham Finances, while Yair Levinstein, the current CEO, will increase his share to 25%. Levinstein will invest 180 million shekels, and WeSure will invest 820 million shekels. Altshuler Shaham Finances will become a subsidiary of WeSure, operating alongside WeSure's existing insurance subsidiary, Ayalon.

This acquisition marks a significant expansion for WeSure, which is currently valued at 2.5 billion shekels. Vinchel, who holds a 29% stake in WeSure, views the deal as a unique opportunity to acquire a strong brand in the Israeli investment market at a favorable price, despite recent declines in Altshuler Shaham's returns and a significant loss of 140 billion shekels from its managed portfolio. WeSure's stock has seen substantial growth, rising 22% this year and 1,100% over the past three years.

The sale stems from a need to consolidate operations. Altshuler Shaham's investment house activities are managed by the parent company, Altshuler Shaham Ltd., a private entity controlled solely by Gilad Altshuler and Kalman Shaham. This separation prevented synergies and required shareholder approval for any cooperation, leading to the decision to sell the controlling stake in the pension and finance arm. Levinstein has chosen to remain with the company following the acquisition.