Wesure says that receipt of the permits completes the additional pre-conditions of the Ayalon agreement, the completion date for the Ayalon acquisition is set for June 30 2022
The Wesure Globaltech technology and insurance company has announced that it is advancing towards completion of the deal for the acquisition of Ayalon. The company has reported that additional approvals have been received forming pre-conditions for execution of the deal. Amongst other things, the Capital Market Commissioner has granted control permits to Wesure’s controlling shareholders (Wesure founders Emil Weischel and Nitzan Tzair Harim and Tzvi and Anat Barak, the owners of Caesarea Medical Electronics Holdings, who signed on agreements for joining the group’s control core), enabling them to control the two insurance companies, Wesure and Ayalon. The Companies Authority has granted Caesarea the necessary approval for carrying out the acquisition as part of the deal.
The Capital Market Commissioner has also granted an insurer license to Ayalon Insurance Company (the merged company) as part of the expected merger of the company with the Ayalon Holdings parent company. The shareholders of Ayalon Holdings approved the merger with the with the Ayalon Insurance Company Ltd subsidiary, in April of this year, and this process, once completed, will represent a “layer folding” in order to conform with the Concentration Law in connection with completion of the transaction.
Wesure says that receipt of the permits completes the additional pre-conditions of the Ayalon agreement, the completion date for the Ayalon acquisition being set for June 30 2022.
Wesure also reports that following receipt of the control permit, a payment of 100 million shekels has been received from Caesarea Medical Electronics Holdings, within the framework of which Wesure Globaltech shares will be allocated to Caesarea Medical Electronics Holdings. The Barak family is expected to reach a 39% stake in the company’s equity, in consideration of a total investment of 270 million shekels.
Within the framework of the Ayalon deal, Wesure will acquire control of Ayalon shares (67%) in consideration of 462.7 million shekels. In connection with this, it was reported that on May 19 2022 an agreement was signed under which it was agreed that a 55 million shekel loan, which was also acquired by Wesure, will be repaid in seven equal annual installments (instead of five payments) starting only on September 1 2024 (instead of September 1 2023).
Wesure Chairman Yohanan Danino: “We are pleased to have received the necessary approvals and are deploying for the acquisition of Ayalon and welcome the entry of Tzvi and Anat Barak to the control core of the group. Wesure Globaltech, on completion of the transaction will include, in addition to Wesure Insurance, Ayalon Insurance, which the group regards as, alongside a growth engine, a major betterment potential, synergy of the operating and business infrastructures, which will blend in with Wesures innovative digital activities, which we believe will create added value and will allow the group to offer customers in Israel and overseas a wide range of advanced products and services in all of the insurance worlds”.
