Business in Brief: Bank Shares Boost Tel Aviv Stock Exchange in Passover Week

My Size shares plummet 11% on the TASE; Cloudyn startup in talks for sale to Microsoft; Apax, Fortissimo, Chinese firms bid on Tahal

A digital ticker shows financial information outside the entrance to the Tel Aviv Stock Exchange, August 4, 2016.
A digital ticker shows financial information outside the entrance to the Tel Aviv Stock Exchange, August 4, 2016. Rina Castelnuovo, Bloomberg

My Size shares plummet 11% on the TASE

The stock price of My Size plunged 11.3 % on Thursday, closing at 7.55 shekels ($2.06 ) on the Tel Aviv Stock Exchange after the company released a draft prospectus designed to enable the dual-listed Israeli-based company to issue an additional 1.078 million shares on the Nasdaq exchange. My Size, which has developed software to help consumers to better gauge what size to order when making online purchases, already has 17.6 million shares trading on the Nasdaq exchange. Last year, the company announced that it would shift the focus of the trading of its shares to the United States. The issuance of the new shares would help existing shareholders sell off their stake in the company and seven of them have announced their intentions to sell out entirely. The company, which is based at Airport City near Ben-Gurion International Airport, finished 2016 with just $34,000 in cash on hand and a loss of $34 million and without any revenues. (Shelly Appelberg)

Cloudyn startup in talks for sale to Microsoft

The Israeli startup Cloudyn, which has developed technology helping companies to monitor their use of the computer cloud, both public and private, is negotiating a sale of the company to Microsoft. Although the parties have not confirmed the details, Elron Electronic Industries, the TASE-traded company that has a 40% stake in Cloudyn, has confirmed the talks over the possible sale to Microsoft. Cloudyn, which has offices in Rosh Ha’ayin, New York and Boston, and is formally headquartered in Massachusetts, was founded in 2011. It has attracted $22 million in investment and has a workforce of about 80. Microsoft has a staff of 1,600 in Israel, including about 1,000 people at its Israeli development center offices. In the past two years, it has snapped up five companies of significant importance in Israel. (Inbal Orpaz)

Apax, Fortissimo, Chinese firms bid on Tahal

Two private investment funds, Apax Partners and Fortissimo Capital, and two Chinese firms have submitted non-binding bids to purchase the infrastructure development firm the Tahal Group from Kardan, which has a 98.4% stake in Tahal. The bids range in price from 100 million to 140 million euros ($108 million to $151 million). Kardan’s interest in selling Tahal comes against the backdrop of its impending pay out of 292 million euros to its bondholders. The next step in the bidding process is the submission of binding bids by the middle of May. Tahal has been engaged in developing water and agricultural projects and more recently has undertaken engineering projects for Israel Railways and the Israeli Defense Ministry among others. Last year the company had profits of 900,000 euros on revenues of 130 million euros. The prior year it earned 21.5 million euros on 168 million in revenues due to a one-time boost in profits. (Yoram Gabison)

Bank shares boost TASE in Passover week

The short trading week due to the Passover holiday ended on the upside on the Tel Aviv Stock Exchange on Thursday. The benchmark Tel Aviv 35 index and the broader Tel Aviv 125 index were both up 0.3% on the day, with the Tel Aviv 35 closing at 1,394.14 points and the Tel Aviv 125 at 1,258.82. The Banks 5 index jumped by nearly 1.1% to 1,635.23 points boosted by shares of Bank Leumi, which closed at 16.81 shekels, up 1.3% on the day. Total trading volume on Thursday was 1.24 billion shekels ($339 million). Shares of Alony Hetz were off 2.7% to 33.87 shekels on trading volume of 67 million shekels, 10 times the daily average after it announced plans to issue new shares. SodaStream International’s stock rose 3.8% to 199.30 shekels. (Shelly Appelberg)