Ayalon Insurance Considers Merging Pension Arm with Altshuler Shaham
Translated & summarized from Calcalist by baba
Ayalon Insurance is exploring a merger of its new pension fund operations with Altshuler Shaham Pension and Provident Funds, a move proposed by its controlling shareholder, Wyseor GlobalTech. The deal would make Ayalon a minority shareholder in the combined entity, which would be managed by Altshuler Shaham. The proposal is under review by an independent committee and requires regulatory approval from the Capital Markets Authority, which will assess its impact on competition. This follows a previous attempt by Ayalon to merge its pension activities in 2016.
The story in 6 lines · by baba
- Ayalon Insurance is considering merging its new pension operations with Altshuler Shaham Pension.
- Wyseor GlobalTech, Ayalon's controlling shareholder, proposed the merger to Ayalon's board.
- The deal could make Ayalon a minority shareholder in the larger, combined pension entity.
- Wyseor GlobalTech is acquiring a controlling stake in Altshuler Shaham Finances, the parent company.
- An independent committee and the Capital Markets Authority must approve the merger.
- Altshuler Shaham Pension manages 107 billion shekels, while Ayalon Pension manages 2.2 billion shekels.
Ayalon Insurance is considering a significant merger of its newly established pension fund operations with Altshuler Shaham Pension and Provident Funds. This potential integration, proposed by Wyseor GlobalTech, Ayalon's controlling shareholder, could see Ayalon become a minority shareholder in the larger entity. Wyseor GlobalTech, controlled by Emil Vinshel and Zvi Barak, is in the process of acquiring a controlling stake in Altshuler Shaham Finances, the parent company of Altshuler Shaham Pension and Provident Funds.
Wyseor GlobalTech recently agreed to purchase 45% of Altshuler Shaham Finances for approximately 800 million shekels, valuing the company at about 1.8 billion shekels. Concurrently, the company's CEO, Yair Levinstein, will increase his stake to 25%. The proposed merger would combine Ayalon's new pension activities into Altshuler Shaham Pension and Provident Funds, with Ayalon receiving shares in the merged company in return. This move aims to address concerns about Wyseor GlobalTech holding two separate pension companies and potential conflicts of interest, while allowing Ayalon to benefit from the combined entity's growth.
The proposal is currently under review by an independent committee, which will assess the terms of the deal, including the valuation for Ayalon's share allocation. This valuation is crucial as it will determine Ayalon's ownership percentage and the ultimate value of the transaction for its shareholders. Altshuler Shaham Pension manages 107 billion shekels, while Ayalon Pension, established this year, manages 2.2 billion shekels. Despite the asset size disparity, Ayalon Pension is experiencing client growth, while Altshuler Shaham faces monthly withdrawals.
Even if the independent committee recommends the merger, regulatory approval from the Capital Markets Authority, headed by Amit Gal, will be necessary. The authority will examine the deal's impact on competition in the pension and provident fund sector, having previously blocked a merger that could have harmed market competition. This is not Ayalon's first attempt at such a merger; in 2016, it merged its pension operations into Meitav Dash Pension and Provident Funds, later selling its remaining stake in 2022.
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