Business in Brief: Moti Ben-Moshe, Rami Levy Want Mega Creditors to See Their Offers

Luzon succeeds this time in taking Dori Construction private | Energy, biotech shares lead Tel Aviv higher in light trading

Moti Ben-Moshe, Rami Levy want Mega creditors to see their offers

Israeli-German entrepreneur Moti Ben-Moshe has asked the High Court of Justice to order that his bid for the bankrupt Mega supermarket chain be shown to Mega creditors when they meet this Thursday. This marks a second challenge to a decision last week by Central District Court Judge Ilan Shilo that food retailer Yenot Bitan had won an auction to buy Mega, contingent on creditors’ approving it. That came after discount retailer Rami Levy said last Thursday it was raising its bid for Mega to 100 million shekels ($25.8 million) more than Yenot Bitan’s and wanted Mega creditors to compare the two before deciding – a move Mega’s court-appointed trustees have asked Shilo to reject on the grounds that the offer will almost certainly be rejected by the Antitrust Authority. But both Ben-Moshe and Rami Levy contend that Yenot Bitan’s bid is also at risk of not gaining antitrust approval. Rami Levy shares ended unchanged yesterday at 152.70 shekels. (Yoram Gabison)

Luzon succeeds this time in taking Dori Construction private

Financially troubled building company Dori Construction is being taken private after minority shareholders accepted a buyout offer from its parent company, U. Dori, after rejecting the same terms two months ago. U. Dori said yesterday that it won the minimum number of votes from minority shareholders to allow its offer of 33 agorot (8 cents) a share to go through. Two months ago, U. Dori failed to muster backing from the 95% of minority shareholders in a tender offer. This time, however, U. Dori restructured the offering as a merger into a closely held company, which under Tel Aviv Stock Exchange rules requires only a majority of more than 50%. Delisting Dori Construction from the TASE should enable its new controlling shareholder, Amos Luzon, to better sort out the builder’s finances and cut costs. Luzon bought U. Dori from Gazit Globe earlier this year after the latter failed to buy out minorities to 3.31 shekels a share. U. Dori shares finished down 1.55% at 32 agorot. (Eran Azran)

Energy, biotech shares lead Tel Aviv higher in light trading

Energy and biotech shares carried the Tel Aviv Stock Exchange higher yesterday in extremely light trading. The TA-25 and TA-100 indices both ended the session up close to 0.7%, at 1,407.97 and 1,220.39 points, respectively. However, just 417 million shekels ($107.7 million) in shares changed hands. Biotech shares were lifted by a 16.3% rise in Mazor Robotics to 29.24 shekels, after it signed a key marketing agreement last week with Medtronic. Oil and gas shares were led higher by Naphtha and Hanal-INOC, which rose 2.7% to 18.69 and 2.5% to 25.11, respectively. TowerJazz advanced 5.05% to 45.77. Insurance shares were down for the day, paced by a 4.5% drop for IDI Insurance to 189.90. Africa Israel Investments rose 4% to 1.25 after plummeting last week on news it was seeking another debt rescheduling. Its Africa Properties unit fell 0.4% to end at 53.51 shekels, even though it reported first-quarter net profit had jumped 250%, to 182 million shekels. In currency trading, the dollar marked its fifth daily advance against the shekel, gaining 0.3% to a Bank of Israel rate of 3.871. (Shelly Appelberg)