Israel's TAT Technologies Wins Contract for $40 Million From Unnamed Foreign Airline

Business in Brief | Elsztain moves forward with plan to buy IDB’s Discount Investments stake ■ ReWalk shares on plans for $15 million share offering ■ Fox-Wizel brings in Reshet Network as partner for new Terminal-X ecommerce site ■ Tel Aviv shares start new Jewish year lower

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File photo: An Airbus SE A321.
File photo: An Airbus SE A321.Credit: Luke Sharrett/Bloomberg

Elsztain moves forward with plan to buy IDB’s Discount Investments stake

Eduardo Elsztain’s controversial plan to meet the terms of the Business Concentration Law by buying publicly traded Discount Investment Corporation via a private investment vehicle moved a step forward on Sunday. Independent directors of Discount and its parent company, IDB Development Corporation, approved a memorandum of understanding under which Elsztain will buy IDB’s 71% stake for 1.77 billion shekels ($510 million), or 16.60 shekels a share. That represented a premium off 22.5% premium over Discount’s Tel Aviv Stock Exchange-traded price, which closed 0.4% up at 13.60 shekels. Elsztain will finance the purchase through a sellers’ loan from IDB, a plan that initially raised the hackles of the Israel Securities Authority and the Justice Ministry. But Elsztain said the plan was the only one that would enable him to meet the terms of the law by its December 31 deadline and reduce his pyramid structure of his IDB to two publicly traded companies. IDB bondholders must still approve the plan. (Shelly Appelberg)

TAT Technologies wins contract for $40 million from unnamed foreign airline

TAT Technologies, a maker of aircraft components, said on Sunday its U.S. maintenance unit had won a $40 million, five-year contract from a U.S. airline. TAT, which designs, develops and manufactures heat exchangers, cooling systems, cold plates and other equipment, didn’t name the airline but it is believed to be one of the world’s 10 largest in terms of fleet and flies Boeing and Airbus jets. The company’s Piedmont Aviation Services unit in North Carolina had been doing about $1 million a year of business with the carrier before the new contract was signed. “Until now, we had been renovating some of their fleet’s heat exchangers and landing gear fleet, and now we will also be responsible for the maintenance of auxiliary engine units,” said TAT CEO Igal Zamir. The company has been riding growth in avaation services globally. Shares of TAT, which is 60%-owned by the FIMI private equity funds, finished up 6% at 40.02 shekels ($11.46). (Guy Erez)

ReWalk shares on plans for $15 million share offering

Shares of ReWalk Robotics, maker of a wearable exoskeleton that allows paraplegics with spinal injuries to stand and walk independently, slid over the holiday weekend on Wall Street after it filed to raise $15 million in new a shares offering. The company didn’t say how much the shares in the offering, part of its attempts to raise cash to boost its product line, would be priced at but with a market cap of $31.5 million the offering would substantially increase the supply of ReWalk stock. The company says it will use net proceeds for sales and marketing and broadening third-party insurance coverage as well as for research and development costs related to developing a lightweight “soft suit” exoskeleton device aimed at patients who have suffered a stroke. Canaccord Genuity is the sole book-runner. Shares of ReWalk, which went public in 2014 at a $136 million valuation, finished down nearly 15% Thursday and Friday to end at $1.45. (Omri Zerachovitz)

Fox-Wizel brings in Reshet Network as partner for new Terminal-X ecommerce site

Fox-Wizel, the apparel retailer, said on Sunday it had enlisted a partner for the Terminal-X ecommerce site now in development. Reshet Network, a joint venture between the television broadcaster Reshet and Horovitz Young Holdings, will take a combined 44% stake in the new business at a 200 million shekel ($57 million) valuation. Instead of cash, however, Reshet will provide 50 million shekels of free advertising over the next five to eight years on Channel 13, which will begin broadcasting next month. Nir Horowitz will take over as CEO of Terminal-X, which will be selling fashion and lifestyle products under the Fox label or international brands with which it makes agreements. The website is being set up at a cost of 40 million shekels. Shares of Fox ended down 0.4% at 72.84 shekels. (Eran Azran)

Tel Aviv shares start new Jewish year lower

Tel Aviv shares started the new Jewish year with a drop as trading resumed on Sunday after a long holiday weekend. The TA-35 and TA-125 indices both ended down more than 0.2% at 1,416.52 and 1,292.43 points, respectively, on very thin turnover of 486 million shekels ($139 million). Among decliners, Teva Pharmaceuticals finished 1.5% down at 5.90 shekels while Cerragon led TA-125 losers on a 9.2% drop to 6.69. Opko Health jumped 10.6% to 23.51 and El Al Airlines gained 3.6% to 2.43. Mazor Robotics climbed 2.8% to 84.04 after it said it won European CE Mark approval for its Mazor X Surgical Assurance Platform. Intec Pharma ended 8.7% higher at 31.52 after Oppenheimer raised its target price for the company’s U.S. traded shares to $15 from $10. Jerusalem Economy Corporation was the second most active share of the day but ended virtually unchanged at 8.76. Perrigo lost 2.3% to end at 294.60.  (Uri Tomer)