In June 2021, the young insurance company surprised and alignment the local capital market when it announced that it was acquiring control of the old company Ayalon . After negotiations that lasted about a year, the deal was completed, when Wishor paid a total of 448 million shekels for 67.3% of Ayalon. Now, the insurance company controlled by Emil Winschel and Nitzan Tseir-Harim is offering to purchase another share of Ayalon.
The Board of Directors of Wishor GlobalTech, the public parent company, approached the Board of Directors of Ayalon Insurance on Monday, and proposed that it open negotiations according to which Ayalon Insurance would purchase the shares of Wishor Insurance, which coordinates the company’s digital insurance activities in Israel. In exchange for the purchase of the shares, the public company of Wishor will be allocated additional shares in Ayalon Insurance For the time being, the parties have refused to specify how many Ayalon shares are involved, while the amount Wishor will pay for them has also not been specified. We will remind you that the amount Wishor paid in exchange for the purchase of the existing shares was a 74% premium over the market price of Ayalon shares at the time of the completion of the transaction and at that time was 60% higher % of the value at which Wishor itself is traded on the Tel Aviv Stock Exchange.
If the transaction proposed by Wishor is carried out, the parent company will own two main companies: Ayalon Insurance – which will concentrate Ayalon’s insurance business alongside Wishor Insurance’s digital activity in Israel and WeSure USA Holdings, which will coordinate its activities in the US. This, at the same time as the holding in the group’s technology development company and alignment
In connection with the activity in the USA, we note that in recent days Wishor reported the start of marketing of its products in the American market, following the strategic cooperation agreements signed with the insurance group AmTrust. The activity in the USA is carried out through the subsidiary company WeSure Digital, which is 70% owned by the company and at the rate of 30% by AmTrust.
The Board of Directors of Wishor GlobalTech states in the letter of reference to the Ayalon Board of Directors that the proposed transaction may improve the activities of the two companies and their efficiency while mutually maximizing the possible synergies, and increase value for each of them individually, and for the group as a whole. Also, it was stated in the letter that in the estimation of the company’s board of directors, the transaction can improve the digital capabilities of Ayalon Insurance and accordingly its positioning in the competitive insurance market and even lead to further strengthening of the equity.
Wishor GlobalTech states that the company’s board of directors’ appeal to the Ayalon Insurance board of directors is a proposal to open non-binding negotiations between the parties, and there is no certainty that the parties will enter into negotiations, or conduct negotiations, and that any transaction will be completed between the parties or any agreement will be signed. Also, It was noted that any contract between the parties, as formed, will be subject to various conditions, including approvals required from the relevant authorities.
Emil Winschel, the chairman of the public company, said that now, after completing the acquisition of the controlling interest in Ayalon Insurance, “we intend to work to maximize the synergies between the two insurance companies of the group in Israel.”
“The transaction proposed to the Ayalon board of directors will be considered a win-win for both insurance companies, since on the one hand, it will simplify the holding structure of the Wishor Globaltech group, and allow it to concentrate its insurance activities in Israel under the arm of Ayalon, and at the same time, the transaction will bring maximum efficiency to the companies, transfer capabilities digitalization for Ayalon and will improve its financial strength.”