End of an era in Phoenix: Meir Group Of Yaakov Shachar and the Kaz family sold a share of its holdings for about NIS 60 million, and ceased to have an interest in the insurance and finance company, which it previously controlled. After the sale, of about 0.5% of the capital of The Phoenix , The Meir Group, an importer of Volvo and Honda cars, remains with a holding of just under 5% of Phoenix shares, at a current market value of approximately NIS 50 million.
The current sale of the shares, which was made off the stock exchange, was carried out by the Meir Group at a share price of NIS 40 – similar to its market value, which is at a record level and reflects Phoenix’s current market value of NIS 10 billion. This is after a rise of about 120% in value in the last two years and a jump of about 270% from the low level it reached in March 2020 – the peak of the corona crisis in the capital markets in the world and in Israel.
The Meir Group, owned by Yaakov Shachar and Israel Kaz, who recently passed away, acquired control of Phoenix from Yossi Hachmi in 2002, and sold it, at a large profit, to Fuel group Of Yitzhak Tshuva in 2006. The group has not been part of the core of Phoenix for many years, does not take a significant part in its management and is not part of its board of directors.
In recent years, the Meir Group has reduced its holdings in Phoenix, with a cumulative value of hundreds of millions of shekels. The last significant share sale by Meir in Phoenix shares was made a year ago, when it sold about 5% of its holdings in the insurance company for about NIS 325 million, to the UMI car importer controlled by Haim Danon and the Eini family, at a share price significantly lower than NIS 26 at the time. .
UMI, for its part, has already benefited from this investment, which has so far proved to be particularly successful, and is expected to post a profit of NIS 80 million in less than a year, on the sale of about half of its Phoenix holdings (2.6%) last October to Altshuler Shaham Investment House. NIS.
The recent period is doing the Phoenix a favor, with a series of deals that flooded it with immense value that did not go unnoticed by investors, which sent it a return over its competitors in the insurance industry, making it the largest stock exchange insurance company by a significant margin. About NIS 8 billion).
For about two years now, Phoenix has been controlled by the foreign investment funds Centerbridge and Geltin Point, and since the completion of its acquisition of control in November 2019, the Phoenix share has completed doubling its value.