Meitav Dash, Israel’s second-largest investment house, pulled out of a deal to be bought out by London-based private equity firm XIO, saying XIO had changed the terms from the initial offer.
The two sides in late 2016 signed a deal in which XIO would buy Meitav Dash, which manages more than $35 billion in assets, in an all-cash deal worth some 1.48 billion shekels ($409 million).
In a statement to the Tel Aviv Stock Exchange on Tuesday announcing it was cancelling the deal, Meitav Dash took issue with the proposed structure of the company.
“The control structure presented by XIO deviates significantly from the new control structure and constitutes a breach of the agreements reached between the parties,” it said.
Meitav Dash also said XIO also failed to submit applications for Israeli regulatory approvals by an Aug. 20 deadline.
As a result, “On Aug. 21, the company’s board convened and decided to cancel the merger agreement,” it said.
BRM Group owns 28.2 percent of Meitav Dash and businessman Zvi Stepak holds 27.1 percent. Both had committed to voting in favor of the deal. Some 38 percent of Meitav Dash is floated.