Discount Investment profit lifted by Cellcom, GVT offerings
IDB group firm netted NIS 851 million in first quarter
Discount Investment Corporation (TASE: DISI) today reported netting NIS 851 million in the first quarter of 2007, thanks to the successful flotations of group companies Cellcom (NSYE: CEL) and GVT.
Its profit beat the parallel quarter by 165%.
Discount Investment is a holding company with no operations of its own. Its profits and losses are a function of the performance of its group companies.
Nochi Dankner, who owns the IDB (TASE: IDBH) group, which owns Discount Investment, can thank Cellcom for most of that quarterly profit.
Cellcom's initial public offering on the New York Stock Exchange brought NIS 615 million in capital gains to parent company, namely Discount Investment.
As for GVT, Israeli-Brazilian company - Global Village Telecom- it floated on Brazil's Sao Paolo market at a market cap of $1.2 billion, raising $480 million. That flotation brought Discount Investment NIS 108 million in capital gains.