Israel's Delek Sells Phoenix to China's Fosun for $471 Million

Last July, Delek signed a non-binding memorandum of understanding to sell a 47 percent stake in Phoenix to Kushner Group for nearly 1.7 billion shekels but that deal fell apart in December.

Tomer Appelbaum

Israel's Delek Group said on Sunday it had agreed to sell its 52.31 percent stake in insurer Phoenix Holdings to China's Fosun International for 1.8 billion shekels ($471 million).

The agreement is still subject to various regulatory approvals and can be cancelled by either side if it is not closed after five months, Delek said in a statement to the Tel Aviv Stock Exchange.

Last July, Delek signed a non-binding memorandum of understanding to sell a 47 percent stake in Phoenix to New York-based Kushner Group for nearly 1.7 billion shekels but that deal fell apart in December.

Fosun has been expanding in the insurance industry with the acquisition of assets globally.

Shares in Phoenix, which has a market value of 2.68 billion shekels, were up 3.7 percent in Tel Aviv at 0847 GMT.

Delek owns stakes in the giant Tamar and Leviathan natural gas fields off Israel's Mediterranean coast and has been divesting its financial and other non-core holdings.

The company said it was still examining what kind of impact the deal would have on its financial reports.