Business in Brief: Israel’s Bezeq Warns It May Have to ‘Drastically’ Cut Value of Subsidiaries

Israel starts European road shows before bond sale stocks rise

The logo of Bezeq Israeli Telecommunication Corp Ltd, the country's largest telecom group, is seen outside their headquarters in Tel Aviv, Israel June 21, 2017.

Bezeq Israel Telecom said Tuesday it may have to reduce the valuations of its subsidiaries or their activities as part of a review it’s doing for its annual report. The company said it was considering referring to its own activities along with those of its satellite television unit Yes and its subsidiary Bezeq International as one unit instead of three. Treating them as three separate units could require the company to substantially write down the value of Yes along with a reduction in the company’s net profit and shareholders’ equity. “On the other hand, treating these activities as one cash-generating unit is expected to result in a significantly smaller reduction in the value of Yes,” Bezeq said in a statement. Bezeq said it had not yet carried out the evaluation and had not completed its accounting review. Its stock fell 0.8% Tuesday on the day’s highest turnover, after dipping as low as 2.4% during the day. Bezeq’s parent company B Comm tumbled 6%. (TheMarker and Reuters)

Israel starts European road shows before planned bond sale
Israel’s government began road shows in four European cities Monday ahead of a possible issue of euro-denominated bonds, the Finance Ministry said. Buoyed by a strong economy that grew 3.2% last year, a recent credit-rating upgrade and data showing it met its budget-deficit target in 2018, Israel seeks to sell benchmark 10-year bonds and possibly longer-dated 20- or 30-year bonds, depending on market conditions, the ministry said. Israel typically taps international debt markets each year, alternating between dollar and euro-denominated offerings. The road shows are being held in London, Munich, Frankfurt and Paris. A source close to the offering said that pending feedback from investors, an issue could take place this week. Goldman Sachs, Barclays and BNP Paribas are joint lead managers and bookrunners for the offering. (Reuters)

Stocks finish higher as industrials climb
The Tel Aviv Stock Exchange finished Tuesday with gains, as the blue-chip Tel Aviv-35 Index closed 0.5% higher at just under 1,500 points, while the broader Tel Aviv-125 Index rose 0.8%. Industrial shares climbed 1.1%. Notable shares included Kenon Holdings, which jumped 12.4% after announcing a deal. Biotime gained 9% and Opko Health gained 5.6%. (Shelly Appelberg)