Altshuler Shaham Holds Emergency Meeting Amid Ownership Shakeup Fears
Two days after a significant deal shook Israel's savings market, Gilad Altshuler, a senior executive at Altshuler Shaham, held an emergency virtual meeting with insurance agents. The meeting was prompted by concerns that agents might actively move clients away from Altshuler Shaham's pension and provident funds to competitors, fueled by public questions on social media about the company's future following changes in its ownership.
Over the past weekend, Gilad Altshuler and Kalman Shaham sold their controlling stake in Altshuler Shaham Finances, which manages the company's provident and pension activities. WeSure will acquire 45% of the shares for approximately 800 million shekels, and CEO Yair Levinstein will purchase an additional 10% for about 180 million shekels, increasing his personal stake to 25%. Altshuler and Shaham will retain and manage the company's other divisions, including mutual funds and portfolio management.
The webinar, attended by Altshuler, Levinstein, and Anat Kenfo Tabor, CEO of Altshuler Shaham Pension and Provident Funds, was conducted without a live Q&A. However, it marked the first time the two top executives directly explained the deal's implications. They clarified that the transaction signifies a separation of operations, with Altshuler Shaham Finances (pension, provident, credit, alternative investments) continuing as a separate entity. Levinstein and WeSure are acquiring Altshuler Shaham Ltd.'s holdings in the public company, with Levinstein nearly doubling his personal share.
Altshuler Shaham Ltd. will concentrate on managing portfolios, mutual funds, hedge funds, and stock exchange activities. Levinstein stated the goal is to create business synergy and expand the product range for clients and agents, while each company operates independently. Altshuler emphasized that the investment team remains fully operational, with recent positive results indicating a strong trend.
Levinstein explained the decision to split was a mutual one, developed over more than a year, stemming from a shared conclusion that dividing the business was the best path forward after 20 years of partnership. Altshuler added that a 20-year-old separation agreement mechanism (BMBI) was never invoked, reflecting the amicable nature of the decision. Addressing fears of client fund withdrawals, Altshuler assured agents that investment management at Altshuler Shaham would remain unchanged and urged patience, cautioning against rash decisions. He expressed full confidence in the exceptional investment team, whose recent performance validates their capabilities and commitment to excellent client service.
