Business in Brief
Elbit beats rivals for big U.S. contract, Discount and Koor merger completed and Roni Naftali looks to buy out minority shareholders of his Mayanot Eden water firm.
Elbit beats big rivals for Homeland Security contract
Elbit Systems beat the largest companies in the U.S. defense sector – including Boeing, Lockheed Martin, Raytheon and General Dynamics – for a contract worth at least $145 million from the U.S. Department of Homeland Security Customs and Border Protection to deploy border surveillance technology in southern Arizona. The Integrated Fixed Tower contract includes a base period quantity and options that the department can exercise over several years so that the value of the contract may grow, Elbit said Sunday. Industry sources warned, however, that at least one of the losers might appeal the decision. Elbit shares closed up 1% at 202 shekels ($57.50) on the Tel Aviv Stock Exchange.
Discount, Koor merger completed
Discount Investment Corporation Sunday completed the takeover of sister company Koor Industries in a move aimed at simplifying the IDB group. Under the deal, Discount is paying Koor shareholders 73.59 shekels ($21) a share in cash, valuing the company at 3.489 billion shekels and delisting its shares from the Tel Aviv Stock Exchange. With the merger of Discount – 74% owned by IDB Holding Corp. – and Koor, IDB is moving closer to a two-tier company, bringing it in line with the Business Concentration Law passed by the Knesset last December.
Naftali offers to take Mayanot Eden private again
Roni Naftali, the founder and controlling shareholder of Mayanot Eden, said Sunday he was offering to buy out minority shareholders in the bottled-water company for 65.2 million shekels ($18.6 million). In a tender offer, Naftali said he would pay 6.10 shekels for the approximately 10.7 million (58.1%) of the shares he doesn’t already own, with a deadline for responses set for March 17. The offering price represents a 16.5% premium over the company’s average traded price over the last six months, Mayanot Eden said, but unchanged from a failed tender offer Naftali made at the end of 2013. Shares of Mayanot Eden jumped 6.5% in Tel Aviv Stock Exchange trading, to 6 shekels.
Magic shares fall after U.S. price offering
Magic Software shares fell 8.2% to a closing price of 30.55 shekels ($8.70) in heavy Tel Aviv Stock Exchange trading Sunday, after it priced a $51 million secondary share offering in New York. Over the weekend, the company priced six million ordinary shares at $8.50 each, a discount of more than 10% to its closing Tel Aviv Stock Exchange price last Thursday, with the figure possibly growing to 6.9 million if there is enough demand for the stock after the offering closes on Wednesday. Magic’s largest shareholder, Formula Systems, will take 700,000 ordinary shares in the offering, which will keep its stake at 45.9% unless more than six million shares are sold.
Compugen shares plunge in secondary share sale
Compugen saw its share price plunge in New York and Tel Aviv after it sold shares at a sharp discount to its traded price. The Biotech company offered six million shares at $10.50 each on Friday, a 26% discount from their Thursday closing price of $14.20. The stock had been trading at $11.50 a week before. Underwriter Jefferies LLC has a 30-day option to purchase up to 900,000 additional ordinary shares. Compugen plunged 12.8% to 41 shekels ($11.70) Sunday in heavy Tel Aviv Stock Exchange trading.
Africa Israel barred from offerings pending fraud probe
Lev Leviev’s property company Africa Israel Investments has been barred from offering securities, including condominiums in New York State, pending a fraud probe, Bloomberg News reported. State Attorney General Eric Schneiderman said over the weekend that his Real Estate Finance Bureau is investigating allegations of fraud in the offering of units at the Downtown Condominium across the street from the New York Stock Exchange building. The attorney general said Africa Israel and condominium developer Shaya Boymelgreen sold the units in a $360 million offering, but later abandoned the renovation, Bloomberg said. Shares of Africa Israel edged down 0.1% to 8.32 shekels ($2.36) in Tel Aviv.
Tel Aviv shares end mixed as bonds post sharp rises
The Tel Aviv Stock Exchange’s benchmark TA-25 traded in a narrow range all day on Sunday, ending the session with a gain of just 0.02% to 1,350.89 points. Turnover reached a brisk (by Sunday standards) 782.5 million shekels ($223 million). The TA-100 finished unchanged at 1,256.54. Bond prices rose sharply, with the Tel-Bond 20, 40 and 60 indices posting gains of up to 0.18%, while the government’s shekel bond due in 2023 advanced 0.15%, to cut its yield to 3.24%. Among the day’s top gainers were TowerJazz, which closed up 4.6% at 26.46 shekels after Chardan Capital Markets assigned it a BUY rating and raised its target price to $15. Clal Biotechnology extended last week’s rally on news it might be selling its Andromeda unit, adding 6.1% to a close of 11.25 shekels.
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