Ayalon Insurance Weighs Joining Wobi in Altshuler Shaham Acquisition
Ayalon Insurance is reviewing a proposal from parent company Wobi to join the acquisition of Altshuler Shaham Finance, potentially merging provident fund activities to overcome regulatory hurdles.
Ayalon Insurance, which entered the provident fund sector just three months ago, is considering stepping back from independent operations and joining its parent company, Wobi, in the acquisition of Altshuler Shaham Finance. Ayalon announced it received a renewed proposal from Wobi to participate in the acquisition deal, prompting its board to examine potential cooperation.
The board of Ayalon Insurance authorized management, accompanied by the board chairman and supervised by the audit committee, to explore ways to cooperate with the Altshuler group. Under the proposal, Ayalon might acquire a minority stake in the new combined entity while merging its provident and pension activities with those of Altshuler Shaham Finance, circumventing regulatory hurdles posed by the Concentration Law.
Altshuler Shaham Finance currently manages 144 billion NIS in provident and pension assets, having lost over half its assets since the beginning of the decade. Wobi, controlled by Emil Weiner and Zvi Barak, recently signed an agreement to acquire a 55% stake in Altshuler Shaham Finance for 1 billion NIS, which includes 45% for Wobi and an additional 10% for CEO Yair Lewinstein.
Ayalon launched its provident fund activity three months ago with ambitious growth targets, aiming to reach 100 billion NIS in assets. However, early returns proved weaker than industry averages, leading to a strategic rethink and paving the way for synergy with the larger Altshuler group.
