TEL AVIV (Reuters) - Israeli conglomerate Delek Group (DLEKG.TA) said on Monday it has signed a binding agreement to sell its 52.3 percent stake in insurer Phoenix Holdings (PHOE1.TA) to China’s Fujian Yango Group Co 000671.SZ for 1.95 billion shekels ($515.9 million) in cash.
Delek said in July that it had signed a non-binding deal to sell the stake to the Chinese holding group for at least 1.85 billion shekels.
The deal is subject to various regulatory approvals, it said in a statement to the Tel Aviv Stock Exchange.
As of March 31, Delek’s investment balance in Phoenix was approximately 1.8 billion shekels. The company said it is assessing the implications on its financial statements of the deal if it is completed.
In March, a non-binding agreement to sell Phoenix to a U.S. insurer, which industry sources identified as AmTrust FinancialServices (AFSI.O), was canceled by both sides.
Delek had previously agreed to sell its Phoenix stake to China’s Fosun International (0656.HK) for 1.8 billion shekels but the deal collapsed when conditions were not met.
Reporting by Tova Cohen; editing by Jason Neely