Fosun withdraws plan to acquire Israeli insurer Phoenix Holdings
No reasons cited for the withdrawal of the US$489 million buyout
Fosun International, the Chinese conglomerate backed by billionaire Guo Guangchang, announced on Wednesday that it has abandoned efforts to acquire Phoenix Holdings, Israel’s forth largest insurer.
“The purchaser and the seller have agreed to terminate immediately the share purchase agreement,” according to a filing to the Hong Kong Exchanges and Clearing by Fosun International on Wednesday morning.
Fosun did not specify any reasons for terminating the acquisition.
“Neither party is obligated to make any termination payments to the other party under the share purchase agreement, and each party irrevocably and unconditionally releases and discharges the other party absolutely from all claims, liabilities and demands under or in connection with the agreement,” the filing said.
In late June, Delek Group, the holding company of Phoenix Holdings, based in Israel, said it would sell its entire 52 per cent stake in Phoenix to a unit of the Shanghai-based conglomerate.
Fosun International later confirmed the information in a statement to the Hong Kong stock exchange, adding that the purchase price was about US$461.6 million (HK$3.6 billion) plus interest accrued before the deal’s closing date, with other adjustments possible. The maximum payable may be about US$489 million, it said.