Domain Registration

Barak family to become partner in WeSure, Ayalon for NIS 270m

  • September 13, 2021

Digital insurance group WeSure Global Tech (TASE: WESR) has reported another important strategic agreement, in which Caesarea Medical Electronics (CME), controlled by the Barak family, will become its partner in the controlling interest in insurance and finance group Ayalon Holdings Ltd. (TASE: AYAL) when the acquisition of that company is completed, and will also become a substantial shareholder in WeSure Global Tech itself.

Under the agreement, on the completion of the agreement whereby WeSure Global Tech is to buy control (67.2%) of Ayalon Holdings from the executor of the late Levi Rahmani, CME will buy from WeSure Global Tech 25.6% of the shares in Ayalon Holdings for NIS 180 million, reflecting the same price per share as WeSure Global Tech is paying.

At the same time, CME will invest NIS 90 million in exchange for 14.28 million shares in WeSure Global Tech, through a private placement of shares. These shares will represent 17.5% of the shares in WeSure Global Tech, and will be issued at NIS 6.3 per share, representing a premium of 8% over the share price in the IPO that WeSure Global Tech carried out in March this year.

In response to the announcement, WeSure Global Tech’s share price is up by more than 8% on the Tel Aviv Stock Exchange today, while Ayalon Holdings’ share price is up by nearly 7%.

The agreements are subject to several conditions, among them approval by the WeSure Global Tech board of directors, completion of the acquisition of Ayalon Holdings, and approval by the Commissioner of Capital Markets Insurance and Savings and by the Commissioner of Competition.

WeSure Global Tech chairperson Yohanan Danino said, “We are delighted that the Barak family, which is a substantial player on the capital market and has a high reputation, is joining the controlling core of WeSure Global Tech nd Ayalon Holdings. This is another important stage in realizing the group’s strategy of expanding its activity in Israel and globally. I welcome our new partners.”

In June this year, WeSure Global Tech announced the purchase of control in veteran insurance company Ayalon Holdings from the heirs of the company’s founder, Levi Rahmani. WeSure Global Tech reported at the time that it was buying 50.445% on the shares in Ayalon Holdings for NIS 345 million, representing a 33% premium on the market price of the shares. Emil Vainshel, one of the founders of WeSure Global Tech, previously served as CEO of Ayalon.

A month ago, Rahmani’s executor announced that he had no objection to WeSure Global Tech buying the rest of Rahmani’s stake, and it was agreed that the company would buy another 16.8% of Ayalon Holdings for NIS 118.17 million.

Published by Globes, Israel business news – en.globes.co.il – on September 12, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021


Article source: https://www.globes.co.il/en/article-1001384480

Related News

Search