The Ticker: Shefa Yamim Reportedly Weighing London Share Offering

Strauss quarterly profit weighed down by weaker currencies; Matomy profit boosted by acquisitions.

Rami Shllush

Shefa Yamim reportedly weighing London share offering

Shefa Yamim, which is exploring for precious minerals in the Haifa area based on a prophecy by the last Lubavitcher rebbe, is looking to raise up to $20 million in an initial public offering in London, a source close to the company told Reuters yesterday. Shefa Yamim, already listed on the Tel Aviv Stock Exchange, is interested in raising between $10 million and $20 million on London’s junior Alternative Investment Market, the source said, on condition of anonymity. The proceeds from an offering will be used for business development and continued exploration, the source said. The company has said it has found strong geological signs of gemstone deposits in northern Israel based on a conversation CEO Avi Taub said he had with the late Rabbi Menachem Schneerson, who told him that precious stones were divinely buried in a valley near Haifa. Shares of Shefa Yamim, which declined to comment, finished up 5.6% at 1.48 shekels (38 cents). (Reuters)

Strauss  quarterly profit weighed down by weaker currencies

Strauss Group reported yesterday a 12% drop in fourth-quarter profit, hurt on coffee sales by the weakening of the Brazilian real and Russian ruble. The maker of snacks, fresh foods and coffee said adjusted profit fell to 74 million shekels ($19.2 million) in the quarter from 84 million a year earlier. Revenue slipped to 1.9 billion shekels from 2.1 billion but was up 4.2% excluding negative foreign currency effects due to the strengthening shekel. Coffee revenue dropped 15% to 875 million shekels, though excluding foreign currency effects they rose 9.4%. Meanwhile, the company announced that its Tres Coracoes joint venture in Brazil would buy the instant coffee operations of Cia Iguacu from Japan’s Marubeni Corporation. Strauss said the acquisition, which needs regulatory approval, would make Tres Coracoes, already Brazil’s market leader in roasted coffee, the second biggest player in the country’s instant coffee market. Financial details were not disclosed. Strauss shares ended 0.7% lower at 54.81 shekels. (TheMarker Staff)

Matomy profit boosted by acquisitions

Matomy Group, a digital advertising firm, said yesterday its revenue and adjusted net income both jumped 14% in 2015, boosted by an increase in mobile activity and two acquisitions. Net income excluding one-time items rose to $8.2 million from $7.2 million while revenue increased to $271 million from $237.4 million. CEO Ofer Druker termed 2015 a “transitional year” as the company shifted its focus to mobile and video through new product development and acquisitions. Matomy acquired mobile advertising platform MobFox in late 2014 and video advertising platform Optimatic lata year later. MobFox will drive future revenue growth with the aim of 50% of revenues being generated by mobile by the end of 2017, Druker said, adding that the company plans to continue to expand in Asia, opening offices in China and South Korea later this year. Shares of Matomy, which are traded in London and Tel Aviv, closed 7.8% at 5.73 shekels ($1.49). (TheMarker Staff)

Tel Aviv shares end virtually unchanged

Tel Aviv shares ended virtually unchanged yesterday as financial-services stocks rose and real estate shares and Bezeq sank. That left the benchmark TA-25 index up a fractional 0.02% at 1,485.32 points, while the TA-100 added 0.06% to 1,297.93, on turnover of 1.25 billion shekels ($320 million). Finance stocks were paced by gains of 1.7% for Bank Hapoalim and 1.2% for Bank Leumi to 13.90. Property company Isras led the TA-100 higher on a 6.8% gain to 309.70 shekels after reporting that net operating income a day earlier rose 6% last year to 272 million shekels, but other property companies were down sharply: Industrial Buildings lost 4.1% to 3.76 and Gazit Globe 2.4% to 34.08. SodaStream topped losers in the TA-100 index, declining 4.4% to a close of 53.64 shekels. Bezeq fell 1.7% to 8.80 shekels after its Pelephone unit’s operated were disrupted by a fire at a switching center. (Uri Tomer)