Business in Brief: Shares Lower on the Tel Aviv Stock Exchange

Frutarom continues buying spree with $6 million acquisition of German firm; Allot Communications announces 1st quarter revenue decline; Urbancorp’s Alan Saskin files for personal bankruptcy, in addition to his firm’s woes.

Stock prices flash on an electronic screen displaying world clocks at the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Dec. 11, 2014.
Stock prices flash on an electronic screen displaying world clocks at the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Dec. 11, 2014. Credit: Bloomberg

Frutarom continues buying spree with $6 million acquisition of German firm

Haifa-based flavorings and extracts manufacturer Frutarom Industries announced its fifth acquisition since the beginning of the year on Tuesday with the purchase of the German firm Extrakt Chemie Bruno Stellmach, which is engaged in producing natural raw materials for the pharmaceutical industry as well as food, nutritional supplements and cosmetics. Frutarom has agreed to pay $6 million in cash for the company, which is based outside Hanover, and to assume the German firm’s $2.2 million in debt. Extract Chemie had $10 million in revenues over the past year and, in addition to developing products in the pharmaceutical field, has decades of experience in the natural juice market. Shares of Frutarom closed down 1.6% on the Tel Aviv exchange Tuesday to 188.00 shekels ($50.17). (Yoram Gabison)

Allot Communications announces 1st quarter revenue decline

Allot Communications, the Hod Hasharon company broadband solution provider listed on the Nasdaq and Tel Aviv exchanges, announced Tuesday that its 1st quarter revenues had declined by 22% to about $23 million. Analysts had predicted 1st quarter revenues to come in at $24 million. In the course of the quarter, the company closed major deals with 11 companies, including six mobile providers. The firm reported adjusted (non-GAAP) losses of $700,000. Analysts had expected the company would essentially neither make or lose money in the quarter. The company has been suffering from shifts in its traditional market and has been looking for new growth engines. It is focusing now on new value-added services such as security, but was not able to offset a decline in revenues from more traditional sources. Allot shares declined on the Tel Aviv exchange Tuesday by 3.2% to 18.99 shekels ($5.07). (Omri Zerachovitz)

Urbancorp’s Alan Saskin files for personal bankruptcy, in addition to his firm’s woes

Alan Saskin, the CEO of Urbancorp, the troubled Toronto-based real estate firm that floated bonds on the Tel Aviv stock exchange and then ran into financial trouble, has himself filed for personal bankruptcy in Canada. The filing on Monday follows Canadian bankruptcy restructuring proceedings filed by eight Urbancorp subsidiaries and an additional case pending against Urbancorp itself in Israel. The court in Israel appointed an Israeli lawyer, Guy Gissin, as a special director of the company. Urbancorp issued its 180 million shekels ($48 million) in bonds in Tel Aviv just four months ago. (Eran Azran)

Shares lower on the TASE

Shares edged generally lower on the Tel Aviv Stock Exchange on Tuesday. The benchmark Tel Aviv-25 index dropped 0.86% to 1,414.62 points while the broader Tel Aviv-100 slumped 0.57% to 1,226.94. Trading volume was 1.25 billion shekels ($334 million). Among shares of note, Mylan rose 1.78% on the day to 159.80 shekels on its earnings report. Shares of Israel Chemicals, by contrast, were down 2.82% to 16.91 shekels. After a major slide Monday, Ability was down another 13.87% to 17.94 shekels after restating its earnings. (Shelly Appelberg)

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