Summit offers to buy half of JEC’s Industrial Buildings stake
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A contest for control of Jerusalem Economic Corporation appeared to be shaping up after Summit Real Estate on Wednesday offered to buy half of JEC’s 78.35% stake in Industrial Buildings Limited.
Summit, which controls 19.4% of JEC, said it was willing to pay 600 million shekels ($158.3 million) for the stake without conducting any due diligence. The offer comes days after Los Angeles brothers Naty and Ofer Saidoff offered to buy 30% of JEC for 533.6 million shekels, a lowball offer that is unlikely to draw much interest from shareholders.
Market sources speculated that Summit’s offer may be part of a deal under which it would sell the Saidoff its JEC stake and use the proceeds to pay for Industrial Buildings. Alternatively, the offer, which is good until September 30, could be used to undermine the Saidoff bid for JEC.
Industrial Buildings shares went down from 4.8% to 4.45 shekels by close. JEC rose 3.3% to 8.78 shekels. (Michael Rochvarger)
Housing & Development has loss on Nigeria
Housing & Development Limited took a 132 million-shekel ($34.8 million) hit in the second quarter from hedging operations against the Nigerian currency, As a result, the company posted a 31.3 million-shekel loss for the second quarter, compared with 37.2 million profit a year earlier.
The company's extensive building operations in the African country suffered as the currency was devalued 30% up to the end of the second quarter and the economy slid into recession. The second quarter wasn’t all bad. Operating profit jumped 37% to 122.9 million shekels thanks to the company’s role as contractor in the Tel Aviv Light Rail project.
Housing & Development also benefited from selling land it owned in Hadera and from a $90 million debt the Nigerian government finally paid, enabling the company to reverse a 38 million-shekel provision it had made.
Housing & Development, which is controlled by Shari Arison, closed up 1.5% at 6.54 shekels. (Yoram Gabison)
Court freezes Navidea’s bank accounts
Shares of Navidea, a U.S. biotech company traded on the Tel Aviv Stock Exchange, plummeted Wednesday in New York after a Texas court granted a temporary injunction barring it from operating or using new financial accounts without getting permission from the plaintiffs in the case.
The ruling came after Capital Royalty Partners called its $56.1 million loan and sought an emergency court order last spring to declare the amount immediately due. Capital notified Navidea that it was in default and would act as it sought fit to ensure repayment.
Navidea shares were down more than 41% in late New York Stock Exchange trading at 32 cents. (TheMarker Staff)
Tel Aviv shares end the day, month lower
Tel Aviv shares gave up early gains Wednesday to end the day and the month lower.
The blue chip TA-25 index ended down 0.1% for the day at 1,447.01 points, leaving it down 0.75% for August and down 5.35% so far this year. The TA-100 finished 0.2% lower at 1,271.53 as 1.16 billion shekels ($310 million) in shares changed hands.
Real estate shares were lower, with Gazit Globe falling 2% to end at 39.20, Airport City down 1.9% at 41.20 and Norstar down 4.5% to 70. Norstar was also the biggest loser among TA-100 stocks. Isramco led energy shares lower, falling 2.4% to 72 agorot.
Running against the trend, Bezeq gained 1.3% to 7.58 and Nice System posted a similar gain in heavy trading to finish at 2567.90. (TheMarker Staff)