Koor Industries unloads remaining Credit Suisse shares for $121 million
The IDB group company unwinds investments that helped bring down tycoon Nochi Dankner's business empire.
Israeli holding company Koor Industries sold off its remaining 3.68 million shares, or 0.23 percent stake, in Credit Suisse for 110.5 million Swiss francs ($121.5 million), the company said on Thursday.
Koor, which began buying shares in the Swiss bank in 2008 and whose stake had reached about 3.5 percent, expects to post a capital gain of 27 million shekels ($7.75 million) in the first quarter from the transaction.
The company used 33.2 million Swiss francs from the sale of the shares to redeem all outstanding loans from banks Morgan Stanley and Citibank which it guaranteed using Credit Suisse shares as collateral.
On Wednesday, Koor said it had sold 4.9 million shares for 146.3 million francs, a move that would result in a 33 million shekel gain in the current quarter.
In July, Koor's board approved a change in the company's investment policy that would enable it to sell shares in Credit Suisse.
Since then, Koor sold 31.06 million Credit Suisse shares for 897 million francs.
Since Koor announced a change in its investment policy in August 2013, the company has sold 31.06 million shares for a total of 897 million Swiss francs.
The company said it would declare a net profit of 35 million shekels in the fourth quarter of 2013 and expected a profit of 64 million shekels for the first quarter of 2014 due to the share sales.
Koor is part of the IDB group, Israel's largest holding group. Koor's investment in Credit Suisse brought IDB great profits early on, but following the European debt crisis racked up major losses that helped contribute to the group's insolvency. In the subsequent corporate restructuring proceedings, tycoon Nochi Dankner lost control of the group to business partners Moti Ben-Moshe and Argentinian businessman Eduardo Elsztain.
Over the course of its investment, Koor bought Credit Suisse shares for a total of NIS 7 billion and accumulated at its peak a 3.2 % stake in Swiss banking giant.
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