Zim
A Zim London cargo ship, in 2014. Photo by Bloomberg
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Zim bailout takes effect after ‘golden share’ issue is resolved

The debt bailout for Zim Integrated Shipping Services – at $3.4 billion, the biggest in Israeli history – went into force on Wednesday after the company and the government agreed on the rights the state would retain for its so-called golden share. These rights, which give the government veto power over the sale or transfer of large blocks of Zim shares, was the last element of the bailout to fall into place. Zim’s creditors will convert $1.4 billion of the company’s debt to them into equity, with controlling shareholder the Israel Corporation retaining a 32% stake in exchange for injecting $200 million into the company. The Trigger-Foresight consulting firm estimates the accord will boost Zim’s cash flow from operations by $184 million this year and another $40 million in 2015. Israel Corp. shares rose 0.3% to 2,077 shekels ($608.62) in Tel Aviv. (Yoram Gabison)

Alcobra to raise $100m in third share sale

Alcobra, which has raised $63 million in two share offerings in the past 14 months, will test the red-hot market for biotechnology shares again, this time with a $100 million share sale. The biomed company on Wednesday filed a prospectus for the offering with the U.S. Securities and Exchange Commission, after reporting that it had completed recruiting patients for a Phase II clinical study of its flagship drug MDX for treating adults with Attention Deficit Hyperactivity Disorder, or ADHD. Alcobra, which said it hopes to publish preliminary results of the trial in the third quarter, apparently wants to inventory capital in the event the results are not entirely successful. Alcobra projects annual sales of $2.2 billion for MDX in 2022. Shares of Alcobra, which is about 41%-owned by Dalia Megiddo and Udi Gilboa, fell 2.4% to $17.37 in early afternoon trading Thursday in New York. (Yoram Gabison)

TASE ends a roaring week with a whimper

Tel Aviv shares struggled to stay aloft on Thursday but ended almost unchanged. The benchmark TA-25 index eked out an 0.07% rise to end at 1,401.26 points while the TA-100 finished unchanged at 1,261.47, with turnover reaching 1.07 billion shekels ($312 million). Despite the day’s tepid performance, both indices enjoyed a 2.2% rise for the week even as Operation Protective Edge raged. TowerJazz led Thursday’s gainers on the TA-100, jumping 8.7% to 38.10 shekels after the U.S. target price for the semiconductor maker was lifted by Ascendiant Capital Markets to $24 from $15. Clal Biotechnology closed up 4.1% at 9.31 shekels after its Mediwound unit said the Health Ministry had approved its Nexobrid product. On the losing side, Perion Network slid another 3% to 32 shekels, bringing its three-day drop to 5.9%. (Shelly Appelberg)