Business in Brief: Bet Shemesh Engines Soars After FIMI Agrees to Buy Big Stake

Shares end mixed as Delek Group weighs on TA-25.

The Tel Aviv Stock Exchange.
Moti Milrod

Bet Shemesh Engines soars after FIMI agrees to buy big stake

Shares of Bet Shemesh Engines jumped Tuesday after the private equity fund FIMI said it had agreed to buy a controlling stake in the company that repairs and upgrades engines for civilian and military aircraft.

Bet Shemesh said FIMI was paying just 45.80 shekels ($11.89) a share for a 42% stake in the company from Clal Industries, or 125 million shekels. That was 6% less than Bet Shemesh’s closing price on the Tel Aviv Stock Exchange the day before, but FIMI’s reputation for adding value to companies was enough for investors to bid up the price 8.2% to a close of 52.79 shekels.

The company, which employs 630 people in Israel and Serbia, has seen its stock climb 78% in the 12 months through Monday. It earned $8.5 million last year on revenues of $78.4 million. FIMI last year bought 59% of Hadera Paper, another Clal unit, for 355 million shekels. (Yoram Gabison)

Shares end mixed as Delek Group weighs on TA-25

The Tel Aviv Stock Exchange ended Tuesday mixed in heavy trading, with shares of Delek Group weighing on the blue-chip index.

The TA-25 finished 0.2% lower at 1,444.34 points while the TA-100 was unchanged at 1,254.58, as 2.3 billion shekels ($600 million) in shares changed hands, about double the recent average.

Delek Group fell 2.4% to close at 722.10 shekels as energy stocks ended lower. TowerJazz rose 6.9% to 51.50 after reporting it received binding commitments from institutional investors to buy some $100 million in its long-term unsecured straight bonds due in March 2023.

Big dropped 2.3% to 217.20 despite strong earnings for the first quarter after it said it would issue new shares at a 4.5% discount to meet new rules for it to remain in the TA-100 index. Clal Insurance rose 1.7% to 44.45 shekels despite posting a 250-million-shekel loss for the first quarter. (Uri Tomer)