18 February 2016 Insurance

Fosun terminates plans to acquire Phoenix

Fosun International has abandoned its plans to acquire Israeli insurer Phoenix Holdings.

The Chinese investment company announced it was to acquire 52.3 percent of financial services company from c for $462 million back in June last year.

However is said certain conditions precedent involved with the deal have not been fulfilled or waived.

Fosun has agreed with Phoenix to terminate the Share Purchase Agreement. Neither party is obligated to make any termination payments to the other party under the agreement and each party irrevocably and unconditionally releases and discharges the other party absolutely from all claims, liabilities and demands under or in connection with the Share Purchase Agreement.

The Fosun Board said it believes the termination of the Share Purchase Agreement is fair and reasonable and in the interests of the company and its shareholders as a whole, and will not have any material adverse effect on the business operation and financial position of the Group.

Fosun said it will continue to focus on strengthening its core competitiveness and look forward to future opportunities in working with Delek Group and Phoenix Holdings in Israel in addition to more opportunities of value investments in the country.

Delek Group has now signed non-binding letter of intent with an un-named foreign traded company which is based in the US but has activities in the insurance sector abroad, for the capital stock of Phoenix Holdings.

It said the buyer may purchase less than 100 percent of the capital stock of Phoenix owned by the company, but such amount would not constitute less than 47.5 percent of the issued and outstanding capital stock of Phoenix.

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