The Ticker / Kenon Holdings’ Unit IC Power Files for Wall Street IPO

RR Media set to be sold; JEC suffers in the second quarter; Euronext to offer Israelis access to the cash and derivatives markets.

AFP

Kenon Holdings’ unit IC Power files for Wall Street IPO

IC Power, the electric-power provider controlled by Idan Ofer’s Kenon Holdings, has filed for an initial public offering on Wall Street that could value the company at $1.5 billion. Kenon said Tuesday its filing with the U.S. Securities and Exchange Commission did not include any information on the price or number of shares to be issued, but that the goal was to develop new power projects, acquire companies and assets, and repay a $220 million loan from Kenon. “The proposed IPO represents a key step in Kenon’s implementation of its strategy to provide its investors with direct access to its primary businesses, including IC Power,” the parent company said. Kenon, whose holdings include the shipping firm Zim and a Chinese automotive venture, said it would be the majority shareholder of IC Power after the IPO. IC Power operates power stations in Latin American, the Caribbean and Israel and had revenues of $137 billion in the 12 months through March, generating $386 million of earnings before interest, tax, depreciation and amortization. Kenon shares ended 1.2% higher at 55.65 shekels ($14.17). (Yoram Gabison)

RR Media may be sold for up to $175 million
RR Media, which supplies digital media services such as live broadcasts to the broadcasting industry, is in talks to sell itself to an unidentified overseas company for a 40%-to-50% premium over its $117 million market value, or as much as $175 million. Rapac, which owns 34% of RR Media, confirmed the talks in a statement to the Tel Aviv Stock Exchange on Tuesday. The news sent Rapac's share up 36.9% to 6.98 shekels ($1.78), though the terms, including the price, have not yet been reached. RR Media’s other shareholders are the private equity fund Viola and Harel Insurance & Finance, which own 28.5% and 6.5%, respectively. The company expects 2015 revenues as high as $148 million, growing to as high as $171 million in 2016, boosted by its June acquisition of rival Satlink Communications for $19 million. RR Media shares were up 15.2% at $7.78 late morning in New York. (Omri Zerachovitz)

JEC posts quarterly loss but is spared ‘going concern’ warning
Jerusalem Economy Corporation, the financially troubled real estate company being sold to the Nakash brothers, has posted a 117-million-shekel ($29.8 million) loss attributable to shareholders for the second quarter but it auditors did not attach a “going concern” warning as had been feared. Much of the loss stemmed from a 329-million-shekel writedown on assets mainly belonging to the Mirland and Sweetland units, whose property portfolios in Russia and neighboring countries have been stung by the collapse of the ruble and recession. JEC, whose controlling shareholder Eliezer Fishman was forced to sell after putting up his shares as collateral against personal loans, had shareholders’ equity of 1.94 billion shekels at the end of June, more than double its value on the Tel Aviv Stock Exchange. The Nakash brothers agreed this week to pay 370 million shekels for a 40% stake in the company controlled by Fishman and to inject capital. JEC's shares ended 0.5% higher at 13.20 shekels. (Michael Rochvarger)

Euronext to offer Israelis access to cash, derivatives markets
Pan-European exchange operator Euronext has received approval from the Israel Securities Authority to let Israel-based qualified trading firms have direct access to its cash and derivatives markets, the company said Tuesday. The agreement will allow Israeli firms to trade cash and derivatives on the regulated markets operated by Euronext, which operates bourses in Paris, Amsterdam, Brussels, London and Lisbon. “The Israeli trading community is agile, innovative and highly competitive, with a strong appetite for diversification and direct access to highly liquid international markets,” said Lee Hodgkinson, CEO of Euronext London. (TheMarker)