Business in Brief: Melissron, Oil Refineries, Bezeq Sell Bonds

Clal chairman faces big pay cut to conform with new law; Delek Group completes sale of insurer; TA-25 index crosses 1,500 mark.

Bezeq Israeli Telecommunication Corp. headquarters in Tel Aviv, Israel.
Bloomberg

Melissron, Oil Refineriess, Bezeq sell bonds

Melissron on Tuesday raised 1.2 billion shekels ($320 million) in the biggest bond sale of the year in Tel Aviv so far, not counting issues by banks. It was well above the 700 million- to 1 billion-shekel range the mall developer and manager had originally planned. Melisson boosted the size of the sale after institutional investors placed orders for 1.8 bilion shekels of the bonds, which were awarded an AA-minus/Stable rating from the ratings agency Standard & Poor’s Maalot. Coupons range from 2.15% to 3.5% for the debt. Meanwhile, Oil Refineries Limited said it raised 550 million from institutions, raising the sum from an originally planned 400 million in response to strong demand, with coupons of 5.9% on its shekel debt and 6.7% on its dollar debt.  Bezeq said institutions bought 713.5 million shekels of its bond offering after subscriptions reached 1.2 billion shekels. S&P Maalot rated the bonds, a widening of an existing series, at AA, while Midroog rated them AA2. (Ruti Levy, Yoram Gabison and Reuters)

Clal chairman faces big pay cut to conform with new law

Danny Naveh, the chairman of Clal Insurance, may be the first financial services executive to feel the pinch of the pay cap law approved by the Knesset earlier this month. The insurer said shareholders would be asked to approve a compensation packages for Naveh, who works an 85% shift, at a cost of 2.37 million shekels ($630,000,) or 131,750 shekels a month. That marks a big cut from his 2015 cost of compensation of 3.4 million, but would put him inside the ceiling of 2.5 million shekels a year. Clal added that Naveh’s pay would also not exceed the other standard set by the law – a ceiling of 35-fold between the highest and lowest paid jobs at any single financial institution. All told, five Clal executives had compensation packages that in 2015 exceeded the law’s minimum, with CEO Izzy Cohen topping the list at 6.8 million shekels. Clal shares advanced 0.9% to close at  48.62 shekels.  (Uri Tomer)

Delek Group completes sale of insurer

Delek Group said Tuesday that new York-based AmTrust Finance Services had completed its acquisitions of Delek’s 66% in Texas-based Republic Companies for $140 million, after receiving all the regulatory approvals required. AmTrust, which pulled out of an agreement to buy Delek’s controlling stake in Phoenix, is paying $35 million of the sum in cash and the rest in the form of a four-year loan from Delek. It also bought a 34% minority stake in Republic  from local investors in Texas for about $70 million.Delek said it expected to post an 18 million shekel ($4.8 million) gain for the second quarter from the sale. The Republic sale comes as part of Delek’s strategy to exit businesses not connected with its core energy operations centered on the Tamar and Leviathan gas fields. Delek shares finished 2.6% higher at 661.70 shekels. (Eran Azran)

TA-25 index crosses 1,500 mark 

The Tel Aviv Stock Exchange’s TA-25 index crossed the 1,500-mark for the first time in more than three months, as the benchmark index rose for its fifth straight session on Tuesday. The TA-25 gained close to 0.7% to end at 1,502.66 points, while the TA-100 added 0.6% to 1,295.85, as 1.04 billion shekels ($280 million) in shares changed hands. Teva Pharmaceuticals led the most actives on a 2% advance to 212.60 shekels and Bank Leumi rose 2.1% to 14.43. Cellular providers also rallied, with Cellcom Israel up 2.8% to 29.22 shekels and Partner Communications ahead 2.6% to 19.49. Elbit Systems rose 1.2% to close at 386.10 after it said it won a $30 million contract. But El Al Airlines, which had rallied on falling energy prices Monday, dropped 2% on Tuesday to 2.99 as prices changed direction. Navidea, which had posted double-digit rises in the previous two days in anticipation of major development’s at its Microphage unit, was down 7.3% at 5.19.  (Uri Tomer)