Wobi to Acquire Controlling Stake in Altshuler Shaham for NIS 1 Billion
Wobi has agreed to acquire a 55% controlling stake in Altshuler Shaham for 1 billion shekels following massive capital outflows, marking a major expansion move.
The initial connection between the parties involved in the Altshuler Shaham deal was formed about two years ago, when Emil Yenshel, chairman and co-owner of Wobi, and Sharon Reich, CEO of Ayalon Insurance, met with Yair Lewinstein, CEO of Altshuler Shaham Finance, to discuss strategic cooperation. At the time, the sale of control was not on the table for the investment house's owners, and the move did not materialize.
However, time and the failure of Altshuler Shaham to stem massive capital outflows—totaling 142 billion shekels from provident funds alone—took their toll. When Altshuler Shaham decided a few months ago not to merge the investment house's private activities into the public company, Lewinstein decided to seek new partners.
Secret Meetings and Rapid Negotiations
Lewinstein met with various market figures, including Guy Bernstein, CEO of Formula Systems, and Gil Deutsch and Roni Biram. In recent weeks, renewed contact was made with Wobi, which signed an agreement to acquire controlling stakes in the investment house.
Sources told Globes that due to sensitivity, meetings took place in quiet cafes. A very small circle of people was involved, aided by the fact that Lewinstein and Yenshel live in neighboring communities in the Sharon region, just an 8-minute drive apart. Once the details leaked, the deal was closed at extraordinary speed, finalized immediately after the Rosh Hashanah holiday.
Ambitions for Growth
"To become a worthy competitor to the 5 largest insurance companies," declared Emil Yenshel regarding the ambitious expansion targets following the acquisition of a 55% controlling stake in Altshuler Shaham for 1 billion shekels.
If completed, Wobi and Ayalon—led by Yenshel and CEO Nitzan Tzairel-Harim—will mark another major milestone. Alongside US insurance expansion and credit licenses, the group aims to challenge giants like Migdal, currently traded at a market cap of 22 billion shekels compared to Wobi's 2.5 billion shekels.
