Market Shows Distrust in Altshuler Shaham-WeSure Deal, Stock Plummets
Translated & summarized from TheMarker by baba
WeSure agreed to acquire Altshuler Shaham for NIS 1.8 billion a month ago, but the latter's stock has since fallen 22% to NIS 1.15 billion. This represents a 40% decrease from the agreed-upon price. The market's concerns and the potential impact of past experiences are being considered regarding the deal's future.
The story in 5 lines · by baba
- Altshuler Shaham's stock has fallen 22% since a deal to sell control to WeSure was announced a month ago.
- The agreed acquisition price for Altshuler Shaham was NIS 1.8 billion, but its market value is now NIS 1.15 billion.
- WeSure, a digital insurance company, is set to acquire Altshuler Shaham.
- Altshuler Shaham CEO Yair Levinstein is also involved in the acquisition deal.
- The market's current distrust is impacting the valuation of Altshuler Shaham.
The digital insurance company WeSure had agreed just a month ago to acquire the public company Altshuler Shaham for NIS 1.8 billion. Since then, Altshuler Shaham's stock has fallen, mirroring other investment house stocks, and is now trading at NIS 1.15 billion, which is 40% less than WeSure's offered price. The stock of Altshuler Shaham has dropped 22% since the deal was announced approximately a month ago. The agreement stipulates that control of the public company Altshuler Shaham is to be sold to the digital insurer WeSure and Altshuler Shaham CEO Yair Levinstein for a valuation of NIS 1.8 billion. The article questions what is truly concerning the market and whether the experience of Emill Vinshel at Ayalon suggests the deal will still proceed.