The Ticker: Elbit Wins $50 Million Order From Asia-Pacific Country

Spacecom shares jump on report that company is for sale; Property & Building boosts bond issue amid strong demand; Energy, banking shares pace lower market

The entrance of the Tel Aviv Stock Exchange.
Bloomberg

Elbit wins $50 million order from Asia-Pacific country

Defense electronics maker Elbit Systems said Tuesday it won a $50 million contract to supply an airborne system to an unnamed Asia-Pacific country. The contract for the system, for use in intelligence, surveillance, target acquisition and reconnaissance missions, will be performed over a three-year period by Elbit Systems’ ISTAR Division, which will be the prime contractor for the program. “There is a growing demand for this sort of solution, and we hope that this project, which marks a significant milestone for us, will lead to more orders from new and existing customers in the near future,” said Elbit CEO Bezhalel (Butzi) Machlis. The system will provide the ability to perform advanced functions such as mission planning, battlefield management, terrain analysis and simulation modelling, both before and during intelligence-gathering operations, Elbit said. Shares of Elbit ended down 0.6% at 333 shekels ($85.54). (Reuters)

Spacecom shares jump on report that company is for sale

Shares of Spacecom, the operator of the Amos fleet of satellites, jumped Tuesday after Bloomberg News reported that controlling shareholder Shaul Elovich is exploring a sale of the company. Spacecom is working with a financial adviser to find a buyer, Bloomberg said, citing unidentified sources. The deliberations aren’t final and no agreement may be reached, the sources said. Elovich sought to sell Spacecom last year but the negotiations failed. He is starting up the process just weeks after the company suffered a major setback when it lost contact with its Amos 5 satellite. Spacecom has declared it a total loss and expects to receive compensation of as much as $158 million from the satellite’s insurer, but will lose the revenue generated by the satellite. As of Tuesday evening, Spacecom had not responded with a statement to the Tel Aviv Stock Exchange. Spacecom shares finished 5.1% higher at 32.82 shekels ($8.43). (TheMarker)

Property & Building boosts bond issue amid strong demand

Real-estate developer Property & Building Limited boosted the amount of its bond sales by two thirds Tuesday after institutional investors flooded it with orders. The company, a unit of the IDB group, said it increased the institutional tranche of its bond issue to 500 million shekels ($128.4 million) from an originally planned 300 million after institutions subscribed for 1.5 billion shekels of the debt. The sale is for additional bonds from its Daled, Vav and Zion series. Interest on the Daled bonds, which have terms of about six and a half years, is 3.43%. For the Vav bonds it was set at 2.4% and for the Zion bonds at 3.52%. Epsilon Underwriting led the sale. A unit of the IDB group, the underwriter will from now on be lead underwriter for all IDB group securities offerings after controlling shareholder Eduardo Elsztain decided to revive the group’s underwriting business. (Michael Rochvarger)

Energy, banking shares pace lower market

Tel Aviv shares ended lower Tuesday, weighed down by declines in energy and banking stocks, even as global markets were generally higher. The benchmark TA-25 index and the broader TA-100 both ended down 0.7% at 1,488.48 and 1,287.48 points, respectively, as some 1.61 billion shekels ($410 million) in shares changed hands. Bank Leumi led bank stocks lower, falling 2.3% to end at 13.09 shekels. Israel Chemicals was also sharply lower, tumbling 2.4% to end at 15.61. In the oil and gas sector, Avner declined 2.1% to 2.21, Delek Drilling lost 2.8% to 11.42 and Isramco was down 1.7% to 67 agorot. Teva Pharmaceuticals, the day’s most active share by a wide margin, lost 0.4% to 256.70. El Al Airlines, however, extended its gains on a positive outlook from Psagot Investment House, advancing 2.4% to 2.89 shekels. In the fixed-income market, the government’s 10-year shekel bond fell 0.11% to raise its yield to 2.11%. (Uri Tomer)