Ayalon Insurance Considers Merging Pension Operations with Altshuler Shaham
Translated & summarized from Bizportal by baba
Ayalon Insurance is considering merging its new pension operations with Altshuler Shaham, following a proposal from parent company Wishure Globatech, which is acquiring control of Altshuler Shaham. The move aims to leverage scale and infrastructure, potentially allowing Ayalon to enter the broader pension market. This follows Ayalon's July relaunch of its pension business, which attracted 1.2 billion shekels in its first month. Regulatory issues prevented Ayalon from directly acquiring Altshuler Shaham, leading to the current exploration of operational integration.
The story in 6 lines · by baba
- Ayalon Insurance is exploring merging its pension operations with Altshuler Shaham, three months after relaunching its own pension business.
- Parent company Wishure Globatech, acquiring control of Altshuler Shaham, proposed the potential operational integration.
- Ayalon's board approved management's examination of the merger, which could include a stake in the combined entity.
- The move aims to benefit from economies of scale and broader distribution channels offered by Altshuler Shaham.
- Regulatory hurdles prevented Ayalon from directly acquiring Altshuler Shaham, leading to the current cooperation proposal.
- Wishure is acquiring approximately 45% of Altshuler Shaham Finances for about 815 million shekels.
Just three months after re-entering the pension fund market, Ayalon Insurance is exploring a potential merger of its newly established pension operations with those of Altshuler Shaham. This consideration follows a proposal from parent company Wishure Globatech, which is in the process of acquiring control of Altshuler Shaham. Ayalon's board of directors has authorized management to examine collaboration possibilities, including integrating their pension and provident fund activities and potentially holding a stake in the combined entity.
Ayalon had only relaunched its independent pension and study fund operations in July, after a long absence from the sector. In its first month, the company successfully raised approximately 1.2 billion shekels. Now, instead of independently developing this business, Ayalon is considering merging it with a much larger entity to leverage economies of scale, existing management systems, and broader distribution and service capabilities. Such a move could also facilitate Ayalon's entry into the broader pension sector.
The context for this potential merger is Wishure's pending acquisition of control in Altshuler Shaham, agreed upon in September with CEO Yair Levinstein. Wishure plans to purchase about 45% of Altshuler Shaham Finances for approximately 815 million shekels, with Levinstein acquiring an additional 10%. This deal values Altshuler Shaham at about 1.8 billion shekels, pending regulatory approvals.
Previously, Wishure proposed that Ayalon directly acquire control of Altshuler Shaham, but Ayalon rejected this due to regulatory restrictions under Israel's concentration law, which limits pyramidal holding structures. A direct acquisition by Ayalon would have created a three-tiered public company pyramid, violating the law. Wishure's new proposal avoids this by exploring cooperation and potential operational integration, with Ayalon possibly holding a stake in the unified body.
No definitive agreement has been reached, and terms regarding ownership percentages or financial conditions for such a merger are yet to be determined. Ayalon's board has approved management's examination of the proposal, under the supervision of the board chairman and audit committee. Wishure emphasized that any future agreement would be subject to approval processes for interested party transactions, given the personal interest of the company and its controlling shareholders.
Mentioned
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Other 3
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
