The Ticker: Gazit Completes 2015’s Biggest Share Sale

Delshah to issue two series of bonds; Super Cofix wins NIS 50m for expansion; Shares end lower, led by biotech, telecoms.

Bloomberg

Gazit completes 2015’s biggest share sale

Real-estate company Gazit Globe raised 600 million shekels ($153.8 million) on Wednesday in the biggest equity offering of the year on the Tel Aviv Stock Exchange. The company increased the size of the secondary offering from a planned 300 million to 400 million shekels after orders for the stock from institutional investors reached 970 million shekels. Gazit’s parent company said it bought 330 million shekels worth of the shares, preserving its 50.25% controlling stake and taking advantage of a 22% drop in Gazit’s share price this year to boost it slightly at an attractive price. Gazit has been selling assets, including 850 million shekels of sales or planned sales in subsidiaries, to reduce its leveraging and improve its local credit rating and win an international one. Gazit shares closed 1.7% higher at 35.20 shekels. (Michael Rochvarger)

Delshah to issue two series of bonds

Delshah Capital, a New York property company, said on Wednesday it planned to issue to two series of bonds, one of which will include real assets its holds in Manhattan’s Meatpacking District as collateral. At the same time, Midroog assigned the bond issue, which will be for between $80 million and $100 million, an A3 rating with a Positive outlook. The A3 rating is a medium-high rating, similar to what other U.S. properties companies whose bonds trade in Tel Aviv, like GFI and The Leser Group, have and trade at yields of 7-8%. Unlike the other U.S. real-estate companies selling bonds in Tel Aviv, Delshah has stated explicitly what the proceeds will be used for, namely to retire debt on four Manhattan properties and to buying out partners in other properties. (Eran Azran)

Super Cofix wins NIS 50m for expansion

Green Lantern, a fund whose backers include Richard Hunter, a former CEO of food retailer Supersol, will take a 50% stake in discount supermarket chain Super Cofix for 50 million shekels ($12.8million). The food retailer sells all its products for 5 shekels, just like its parent company, the publicly traded Cofix chain of cafes. Under the terms of the agreement, Green Lantern will invest 20 million shekels now and make a 30 million-shekel low-interest loan to the company. If Super Cofix meets milestones, the fund may invest 20 million shekels more. The fund is entering as a strategic partner as Super Cofix embarks on an ambitious expansion plan from six stores now to 120 by 2020. “It wasn’t realistic of me to try and do it alone,” said Cofix’s founder and controlling shareholder Avi Katz. Cofix shares declined 1.2% to finish at 13.26 shekels. (Adi Dovrat-Meseritz and Yoram Gabison)

Shares end lower, led by biotech, telecoms

Tel Aviv shares traded lower on Wednesday, with biotech and telecommunications stocks posting the biggest declines. The benchmark TA-25 index ended down 0.4% to 1,527.96 points, a rise of 4.75% for 2015 with one trading day left in the year. The TA-100 was also down 0.4% to 1,315.71 points. Turnover was 1.36 billion shekels ($350 million). Israel Chemicals tumbled 3.6% to end at 16.22 shekels and Income lost 5.3% to 9.46 after its Ytong subsidiary said it was in a commercial dispute with the German company that owns the name and wants to hike licensing fees. El Al Airlines rose 3.5% to close at 3.07 shekels in unusually heavy trading.  (Uri Tomer)