TASE Starts the Year With a Loss

Noy in talks to invest in two London waste-fuel plants; Collplant to list ADRs on Wall Street; Hadera Paper to sell office supplies distributor.

Bloomberg

TASE starts the year with a loss

The Tel Aviv Stock Exchange got off to 2015 on the wrong side of the bed, with telecom shares leading the market lower. The TA-25 benchmark index dropped 0.2% to end at 1,461.97 points while the TA-100 ended down 0.07% to 1,288.01. Turnover was 1.12 billion shekels ($290 billion). Cellcom Israel and Partner Communications led telecom shares lower, both falling 3.7% to 32.69 and 19.54 shekels, respectively. Bezeq was down 1.3% at 6.86. Among blue chips, Perrigo closed down 2% at 641.30 shekels and Bank Hapoalim down 1% at 18.21, though most bank shares were higher. The Israel Corporation surged 5.4% higher to 1,956 after shareholders approved splitting up the company and the conglomerate reported it corrected an accounting error for its IC Power unit that shows IC’s debt was to 376 million shekels less than originally reported. Two companies with big Russia exposure rose sharply – Jerusalem Economy Corporation by 11.8% to end at 12.50 shekels and Africa Israel Investments by 5.5% to 3.76. (Omri Zerachovitz) 

Noy in talks to invest in two London waste-fuel plants

The Noy fund, a private equity investor that specializes in energy and infrastructure project, is in talks to put as much as $200 million into two London facilities that will generate electric power from waste, TheMarker has learned. The two plants, which will take two to three years to construct, will be capable of generating about 20 megawatts. The investment would mark the first foray into Britain for Noy, which on Thursday launched operations for its second fund. The 1.25 billion-shekel ($320 million) Noy 2 fund is the one that will invest in the London project and is expected to join in financing construction of the next phase of Israel’s Route 6 toll road. Noy said that up to a quarter of Noy 2’s investment will be in projects overseas. Noy 1, which was set up in 2011, has earned a nominal return of 15% annually, but managers said they expected to improve its performance as it stages some exits. (Michael Rochvarger)

Collplant to list ADRs on Wall Street

The Israeli medical device company CollPlant said on Thursday it was working to register its shares in the United States to attract American and foreign investors. CollPlant, which makes medicines from plant-derived collagen, a protein vital for tissue repair, said its first level American Depository Receipts would be traded over the counter after a registration process that could take a few weeks to a few months. The company recently began clinical trials for a gel to heal chronic wounds and when completed would immediately apply for European approval to start selling the product in the second half of 2015. CollPlant said it also plans to apply for European regulatory approval by the third quarter of 2015 to sell a product to treat tendonitis. The market in Europe is worth about $2 billion, it said. The company said that after sales begin in Europe, it would seek U.S. regulatory approval to sell in the United States. CollPlant jumped 9.9% to 22 agorot (6 cents) in Tel Aviv. (Reuters)

Hadera Paper to sell office supplies distributor

Hadera Paper said Thursday it had agreed in principle to sell its Graffiti unit, which markets and distributes office supplies, for 48 million shekels ($12.3 million) as it seeks to shed unprofitable business amid sagging sales for its paper. Hadera, which is controlled by Clal Industries, didn’t name the buyer, but market sources said it was the Kravitz chain of office and stationary supplies and a competitor to Graffiti. Hadera expects to post a 10 million-shekel gain on the sale of Graffiti, which has been losing money. Graffiti was formed in 1993 as the company’s marketing arm, but in recent years has account for only 3-4% of Hadera’s sales of printing and writing paper. Last week, Hadera said it was negotiating with another company in the Clal group to a unit developing a 120-megawatt power station. Hadera shares dropped 1.3% to finish at 68.03 shekels. (Yoram Gabison)