Secretive Meetings Led to $270 Million Altshuler Shaham Acquisition

The acquisition of control over the Altshuler Shaham provident fund business by Weשור (Weשור) was finalized shortly after the Rosh Hashanah holiday, following discreet negotiations that began nearly two years ago. Initial contact was made in 2022 between Weשור chairman Emil Vinshel and Ayalon Insurance CEO Sharon Reich, and Altshuler Shaham Finances CEO Yair Levinstein, to explore strategic cooperation. At that time, a sale was not on the table.

However, significant outflows of funds from Altshuler Shaham's provident funds, totaling 142 billion shekels, prompted Levinstein to seek new partners after the company decided not to merge its private activities with the public provident fund company. Levinstein met with various market figures, including Formula Systems CEO Guy Bernstein and owners of Excellence Investment House, Gil Deutsch and Roni Birem. A renewed connection with Weשור was established in recent weeks, culminating in the agreement for Weשור to acquire control.

Due to the sensitivity of the deal, meetings were held in quiet, side-street cafes, away from company offices. A small group of individuals was privy to the negotiations. Levinstein and Vinshel, who are neighbors in the Sharon region, reportedly leveraged their proximity to facilitate discussions. The deal was rapidly concluded, with no draft agreement in place as recently as the Wednesday before news of the talks broke, despite the intervening long holiday weekend.

Gilad Altshuler ultimately approved the sale of his 55% controlling stake in Altshuler Shaham to Weשור and Vinshel for 1 billion shekels. Ran Shaham, son of founder Kalman Shaham and a key figure in the company, was involved in all the transaction's details.

If the deal is completed, it marks a significant expansion for Weשור, which has already pursued an aggressive growth strategy, including the IPO and subsequent acquisition of Ayalon Insurance. This move into the provident fund sector, alongside expansion in the US insurance market and obtaining an expanded credit license, supports Vinshel's ambition for Weשור to become a serious competitor to Israel's five largest insurance companies. Currently, Weשור's market cap of 2.5 billion shekels is significantly smaller than the smallest of the top insurers, Migdal, which is valued at 22 billion shekels.