Altshuler Shaham Cancels Major Investment Deal Just Two Months After Signing

Altshuler Shaham and the underwriting and brokerage firm Leader have agreed to cancel an investment deal just two months after it was signed. Under the original agreement, Altshuler Shaham was set to acquire approximately 18% of Leader at a company valuation of NIS 160 million. The decision to unwind the deal, including the return of investment funds, was initiated by Altshuler Shaham and accepted by Leader's management, headed by Amit Vardi and Shi Ben Yakar.

The initial rationale for the deal was based on synergy between Altshuler Shaham's provident and pension fund activities and Leader's underwriting and brokerage operations. However, the subsequent sale of Altshuler Shaham Finance to WeSure for NIS 1 billion reportedly removed the economic basis for the investment, according to a report by Calcalist.

Furthermore, following its exit from the provident and pension fund sector, Altshuler Shaham plans to independently expand into the brokerage and underwriting fields. This planned entry into a competing business made the nascent partnership with Leader problematic. Amit Vardi and existing shareholders will retain control of Leader, holding 50.01% of the shares, with Vardi committed to remaining CEO for at least five years.

The local underwriting market generates tens of millions of dollars in commissions annually and attracts significant interest from major financial institutions. Alongside Harel's investment in Leader and the presence of Poalim, Phoenix has already entered the field through Epsilon, Clal Insurance is in talks to acquire 20% of Value Base, and Migdal and Menora Mivtachim have active underwriting arms.