Wyshore Globaltech Acquires Majority Stake in Altshuler Shaham

Wyshore Globaltech, controlled by Emil Vinshel and Zvi Barak, has finalized a deal to acquire 55% of Altshuler Shaham Finances for approximately 1 billion shekels, valuing the company at 1.8 billion shekels. The acquisition was made from Gilad Altshuler and Kalman Shaham. Vinshel outlined a clear strategy to transform the company into a significant insurance and finance group, aiming to compete alongside Israel's five largest insurance firms, including Migdal, Clal, Harel, Menora, and The Phoenix. He cited a gap in Wyshore's portfolio, which includes insurance via Ayalon and credit, but lacked long-term savings.

Vinshel drew a parallel to Wyshore's acquisition of Ayalon, which he stated has since undergone significant improvement and become a major player in elementary insurance. He expressed confidence that a similar turnaround can be achieved at Altshuler Shaham, led by CEO Yair Levinstein. Vinshel revealed that Wyshore had been searching for an investment in the provident and pension fund sector for two years, finding the timing and price of Altshuler Shaham opportune. He justified the acquisition over building a similar entity from scratch, estimating the cost and time required to build a 100 billion shekel provident fund operation to be prohibitive.

The deal involves Wyshore acquiring 45% and Yair Levinstein an additional 10%, bringing his total stake to 25%. Altshuler Shaham Finances manages approximately 109 billion shekels in provident funds and 36 billion shekels in pension funds, serving nearly two million savers. The transaction is subject to approval from the Antitrust Authority and the Capital Markets Authority, with a 270-day period for fulfilling conditions. The brand name 'Altshuler Shaham' will be removed from the provident and pension operations, with a new name to be chosen later.

Post-acquisition, Altshuler Shaham Finances will expand into areas previously restricted due to conflicts of interest, such as independent brokerage, trading, mutual funds, and portfolio management. The company will also broaden its non-bank credit business and introduce an insurance arm. Vinshel emphasized the synergy between Ayalon's distribution network and Altshuler Shaham's products, anticipating that Ayalon's agents will now market Altshuler Shaham's pension and provident products. While a merger with Ayalon is not immediately planned, it is expected within three to five years, with several billion shekels managed by Ayalon likely to be transferred to Altshuler Shaham Finances in the interim.

Vinshel assured savers that their investment tracks and personal terms will remain unchanged. He noted that Yair Levinstein has already initiated changes in the investment division, leading to improved returns. He expects the company's performance to significantly improve within one to two years. Management fees, currently averaging around 0.59% at Altshuler Shaham, are within a range that allows for potential adjustments. Gilad Altshuler and Kalman Shaham will retain their private company, which includes mutual funds, investment portfolios, hedge funds, brokerage, and crypto, having agreed not to compete in the provident and pension sectors.