Weeshore Insurance to Acquire Majority Stake in Altshuler Shaham for $1 Billion

Weeshore, a digital insurance company, is set to acquire a controlling stake in the investment house Altshuler Shaham for approximately 1 billion shekels (about $270 million). The deal values Altshuler Shaham's operations at around 1.8 billion shekels, a premium of 23% over its pre-deal valuation.

Under the agreement, Weeshore will hold 45% of the company, valued at roughly 815 million shekels. Yair Weinstein, CEO of Altshuler Shaham's public operations and a key figure in its pension and provident fund management, will purchase the remaining 10% for 185 million shekels. This acquisition will increase Weinstein's stake in the company he manages to about 25%, up from his current 15%.

Altshuler Shaham, co-founded by Gilad Altshuler and Kalman Shaham, currently manages approximately 150 billion shekels. The company has experienced significant asset outflows in recent years, with 142 billion shekels withdrawn from its provident funds and 20.5 billion shekels from its pension funds.

This acquisition marks a significant leap for Weeshore, positioning it as a major player in the capital market. It follows Weeshore's 2020 acquisition of the insurance company Ayalon for 450 million shekels, a move that has since seen Ayalon's value rise to 3 billion shekels. The success of the Altshuler Shaham deal is expected to hinge on the synergy between Weeshore's leadership, Emil Vainshal and Nitzan Tsa'ir Har, and Yair Weinstein.

Regulatory approval from the Competition Authority is anticipated, as Altshuler Shaham's pension and provident fund assets are not expected to exceed the 15% market share limit, potentially avoiding hurdles with the Capital Markets Authority and the Competition Authority. However, the article notes that Israeli regulatory processes can sometimes present unforeseen challenges, referencing the ongoing delays in the approval of the sale of Cal bank.

The deal reflects a broader trend of founding generations in large investment houses seeking to exit active management and realize their investments. While the future of the Altshuler Shaham brand remains uncertain, Weeshore is likely to retain it, similar to its strategy with Ayalon, leveraging the established reputation of the investment house.