The Ticker: Teva Moving U.S. HQ to New Jersey After Winning $40 Million in Tax Incentives

Food retailer Freshmarket plans IPO at NIS 1 billion valuation ■ Yitzhak Tshuva’s Elad Canada returns to the TASE after five years ■ Stock exchange launches index for dollar-linked bonds

A Teva building seen in Jerusalem.
\ Ammar Awad/ REUTERS

Teva moving U.S. HQ to New Jersey after winning $40 million in tax incentives

Lured by $40 million in tax incentives, Teva Pharmaceuticals will be moving its U.S. headquarters from North Wales, Pennsylvania, to the New Jersey town of Parsippany-Troy Hills. New Jersey Governor Phil Murphy said over the weekend that 843 jobs would be transferred to the new site or created while 232 others already working at the Parsippany-Troy Hills location will keep their positions. New Jersey’s Economic Development Authority in June approved about $4 million annually in tax credits over 10 years for Teva. Teva executive Brendan O’Grady said the company will keep a “significant presence” in Pennsylvania and that the new location, covering nearly 350,000 square feet, would be closer to life sciences and business hubs. The Democratic governor said the median annual wage for the Teva jobs is about $128,000, close to 70% higher than the state average. Teva shares ended down 0.9% at 86.50 shekels ($23.86). (AP)

Food retailer Freshmarket plans IPO at NIS 1 billion valuation

Freshmarket, a supermarket chain with 31 center city stores, is planning an initial public offering on the Tel Aviv Stock Exchange.  Shlomi and Yossi Amir, the controlling shareholders, filed a prospectus on Friday to sell 30% of their stock in the company at a 1 billion shekel ($280 million) valuation. If that valuation holds, which it may not after Freshmarket tests investor appetite during its road show, each brother stands to get up to 250 million, including a 120 million dividend they are taking before the offering. Founded in 2004, Freshmarket operates under a variety of different names. In the first quarter of this year it earned a net profit of 14.2 million shekels on sales of 248 million, compared with net of 7.3 million on sales of 414 million for rival Victory. Freshmarket’s unusually high profitability is due to its locations, which enable it to charge premium prices, and to low overheads, including no logistics center or website.  (Guy Erez)

Yitzhak Tshuva’s Elad Canada returns to the TASE after five years

Elad Canada Reality, a unit of Yitzhak Tshuva’s closely held Elal Group, is returning to the Tel Aviv Stock Exchange after a five-year absence. The company, which invests in residential, office and commercial real estate, filed a prospectus on Sunday to raise C$95 million ($72.6 million) in bonds to the public. Elad Canada listed its shares on the TASE in 2010 after a 260 million shekel offering, but withdrew them less than three years later after a poor performance. It also repaid its publicly traded bonds. Since its delisting, Elad Canada has divested most of portfolio of incoming-producing real estate and used to proceeds to repay Tshuva’s debt and investment in new undertakings, mainly residential projects in Canada’s biggest cities. Elad Canada’s flagship project is Emerald City, a Toronto residential project that will comprise nine towers and 2,790 housing units when complete and whose cashflow will be used to repay the bonds. (Michael Rochvarger)

Stock exchange launches index for dollar-linked bonds

The Tel Aviv Stock Exchange added its 29th bond index on Sunday, with the launch of the Tel-Bond Dollar. The new index groups companies using dollar-linked bonds, a sector dominated by energy-exploration companies, the TASE said. The index will include 10 companies and 13 bond series with a current value of 24 billion shekels ($6.6 billion), with Tamar Petroleum having a 24% weighing. The bourse launched 10 bond indices last year and six so far this year as it seeks to create a wider range of investment products and boost trading. The TASE said it expected the new index would attract investors because the yield on dollar-linked bonds is higher than the yield of shekel and index-linked bonds – in the case of the index, the weighted internal yield is 5.7% –  and can serve as a hedge against the shekel-dollar exchange rate. It should also encourage more companies to issue dollar-linked bonds, including foreign companies, the bourse said.  (Jasmin Gueta)

Tech sector gives boost to otherwise dull market

Boosted by the tech sector, Tel Aviv shares ended higher on Sunday in quiet trading. The TA-35 and TA-125 indices both rose about 0.45% to close at 1,530.63 and 1,370.08 points, respectively, with just 375 million shekels ($103.5 million) in shares changing hands. Among the biggest gainers, tech shares Opko health rose 8.4% to 18.82 shekels, LivePerson added 3% to 80.31, TowerJazz rose 2.1% to 80.96 and Biotime climbed 3,2% to 7.73.  Mizrahi Tefahot rose 0.5% to 67.88. The bank and its 50% Yahav unit were fined a combined 340,000 shekels for violating securities rules by discouraging clients from using independent portfolio managers. Delta Galil rose 2.6% to 108.80 after announcing it had completed the acquisition of the French maker of men’s underwear maker Eminence. Jerusalem Economy Corporation rose 1.1% to 8.75 in heavy trading. Among the session’s biggest losers, El Al Airlines dropped 3.1% to 77 agorot and Kamada declined 2.2% to 18.81.  (Michael Rochvarger)