Orbit shares jump 56% on news that FIMI is acquiring a controlling stake
Shares of Orbit Technologies closed up 56%, at 7.70 shekels ($2.13) in Tuesday trading on the Tel Aviv Stock Exchange after it was disclosed that the FIMI private equity firm signed a deal to acquire a controlling stake in the company. Initially FIMI is to purchase 33% of Orbit’s stock for 6.70 shekels per share for 36 million shekels. That’s a 35% premium over the share price of the firm at the opening of trade on Tuesday and pegs the value of the Netanya-based company at 108 million shekels after the new investment. Orbit, which was founded in 1950 and develops communications technology for civilian and military use on land, sea, air and outer space, will be giving FIMI a two-year option to purchase another 2.4 million of the company’s shares at 7.50 shekels per share for 18 million, which would bring FIMI’s stake in the firm up to 42%. It is also getting a subsequent option that would increase it to 56%. (Yoram Gabison)
XOI backs out of purchase of Meitav Dash, the country’s 2nd-largest investment firm
The pending purchase of the Meitav Dash investment firm by the London-based private equity XIO Group has been scrapped, Meitav Dash informed the Tel Aviv Stock Exchange on Tuesday. The rescission follows the failure of XIO to file for the required regulatory approval to acquire control of the Israeli investment firm, the country’s second-largest. The cancellation of the deal follows a 75-day extension of time that Meitav Dash gave XIO to obtain approval from Dorit Salinger, the commissioner of capital markets. “The control structure presented by XIO deviates significantly from the new control structure and constitutes a breach of the agreements reached between the parties,” Meitav Dash added. Initial talks over the purchase, which would have seen the Israeli investment firm sold at a valuation of 1.4 billion shekels ($387 million), a 60% premium over its market cap at the time, began a year ago. In March, the Chinese billionaire Xie Zhikun filed a $940 billion suit against XIO claiming that he had been defrauded by the firm after investing in it. XIO denied that he had invested in XIO. (Assa Sasson and Reuters).
Gazit-Globe Q2 profits jump 282%
Gazit Globe, the country’s largest real estate company, reported that its net profit in the second quarter rose 282%, to 371 million shekels ($102.5 million) from 97 million a year earlier, due to the depreciation of a number of currencies versus the shekel. Property rental income slipped 3.8% to 689 million shekels, while net operating income adjusted for exchange rates grew 4.7% to 490 million shekels. Funds from operations adjusted for exchange rates gained 43% to 175 million shekels. Gazit-Globe raised its outlook for funds from operations to 635 million to 649 million shekels in 2017 from 606 million to 626 million. The company said it would pay a quarterly dividend of 0.35 shekels per share, unchanged from the first quarter. Gazit Globe manages about 130 properties with a combined area of 2.6 million square meters (28 million square feet). (Reuters and Guy Erez)
TASE shares show significant gains
Tuesday trading on the Tel Aviv Stock Exchange produced significant gains for the leading indexes. The Tel Aviv-35 index and the Tel Aviv-125 were both up by 0.9%, with the TA-35 closing at 1,407.05 points and the TA-125 finishing the day at 1,270.75. Volume on the day was 1.33 billion shekels ($367 million). Among shares of note, Orbit Technologies jumped 56% on news that the FIMI private equity firm was acquiring a stake in the company. (See story above). Shares of Tower Semiconductor, which saw considerable gains on Monday, climbed another 1.6% on high turnover of 53 million shekels on Tuesday, closing at 97.84 shekels, on the news of a new company plant in China to be financed by local partners. (Uri Tomer)