Delek Group has announced that on January 27, 2015, a non-binding memorandum of understanding was signed between the company and a foreign traded company with activities including in the insurance sector abroad, encompassing details of the principles to consolidate a binding agreement to sell the control in the Phoenix Holdings Ltd. (42 - 52.3% from the share equity of the Phoenix).
In accordance with the MOU, the full consideration for the sold shares will be an amount equal to the shareholders equity of the Phoenix as of 30th September 2014, subject to defined adjustments, multiplied by the percentage of the Sold Shares of the Phoenix’s issued share capital in addition to the interest rate agreed that will be added to the consideration from September 30, 2014, until the day of completion of the transaction. The consideration will be paid in cash at closing.
It is clarified, that the MOU is not binding except for the obligation of exclusivity for a period as agreed between the parties. The transaction is dependent on due diligence, for a successful completion of the negotiations between the parties and for the execution of a binding agreement. The binding agreement will include conditions of the receival of all of the necessary approvals of the regulators as required by law.
Adapted from a press release by David Bizley