insurance company Israel Phoenix Insurance Ltd. (TASE:PHOE1; PHOE5) acquired a 14% stake in Mayer’s Cars & Trucks from the Shahar and Kass families for NIS 574 million, in one of the largest local capital market deals in recent years. The deal values the Volvo and Honda importer at NIS 4.1 billion, more than previous media reports of the impending purchase.
The higher-than-expected valuation stems from Phoenix’s option to buy an additional 6% stake in Mayer’s and increase its stake to 20%, the highest stake allowed by law. The value of the option, first reported by ‘Globes’, is between NIS 200 and 300 million and will allow Phoenix to increase its stake over the next three years to a valuation of 4.4 to 4. NIS.5 billion.
Mayer’s Cars and Trucks was founded in 1967 by the late Mayer Kass as the exclusive importer in Israel of Volvo cars and trucks. His son-in-law Ya’akov Shahar (81), one of the company’s owners, is best known as the owner of Israeli soccer champions Maccabi Haifa, although the club is not part of the deal with Phoenix.
In 2002 Mayer’s became the controlling shareholder of Phoenix, but after four years it sold half of its stake to the Delek Group, controlled by Yitzhak Tshuva, and over the years sold the rest of its stake, its last shares in Phoenix being sold earlier this year.
The deal shows the enormous value of car importers in Israel and is a continuation of Phoenix’s acquisition of stakes in non-core holdings, including the El Al loyalty club, the retail Max Stock and Yeinot Bitan and Partner Communications.
Published by Globes, Israel business news – en.globes.co.il – October 3, 2022.
© Copyright Globes Publisher Itonut (1983) Ltd., 2022.