The Ticker: Gazit Puts Ronson Europe Unit Up for Sale

Israel Chem says may save magnesium unit; Elbit wins contract for jet anti-missile system; last-minute spike leaves TA-25 higher.

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Israel Chemicals’ Dead Sea magnesium plant.
Israel Chemicals’ Dead Sea magnesium plant.Credit: Reuters

Gazit Globe is putting its 39.8% stake in the Polish residential real estate developer Ronson Europe NV up for sale as it scrambles to raise capital for its ailing U. Dori Construction subsidiary, TheMarker has learned. Gazit’s controlling shareholders, Haim Katz and Dori Segel, are expecting Israel Theaters, which owns another 39.8% of Ronson, to put up its shares for sale as well, so that the sale should reach as much as 500 million shekels ($130.7 million). U. Dori, which controls Gazit’s Ronson stake, was found earlier this year to have understated its costs to the tune of 440 million shekels, forcing Gazit to inject some 250 million shekels of new capital into the unit with more to come. Ronson, which builds in Warsaw and other Polish cities, was formed 14 years ago and went public on the Warsaw Stock Exchange in 2007. Gazit shares closed down 1.6% to 45.56 shekels in Tel Aviv. (Michael Rochvarger)

Israel Chem says may save magnesium unit

Israel Chemicals said on Monday it may reconsider its threat to shut its magnesium operations. ICL had warned it would close the facility, because of the higher taxes and royalties on natural resources proposed by the Sheshinski committee and approved last week by the socioeconomic cabinet. But the company said it would wait to see if the government acts, as it indicated, to set up a “special mechanism” that would exempt the magnesium plant from the new tax regime that goes into effect in 2017. ICL said it would wait to see the actual wording to the Taxation of Natural Resources Law before deciding. “The source of ICL’s concerns springs from the fine print of the regulations as well as about the reliability and stability of such agreements,” it added. Shares of ICLended down 0.7% at 26.80 shekels ($7.01). (TheMarker Staff)

Elbit wins contract for jet anti-missile system

Elbit Systems said yesteday it won a contract from Diehl BGT Defense to provide its J-Music system for protecting aircraft against attacks by ground-to-air heat-seeking man-portable missiles. Elbit said the system would be used in the first phase of the German Air Force’s self-protection program for its 40 new Airbus A400 aircraft. Elbit did not value the one-year contract, but said an amount would not be material to its earnings. Elbit has already delivered systems to equip several types of aircraft to various customers, but the German order will be the first for installation on a plane made by Airbus, along with Boeing one of the world’s two biggest aircraft makers. Elbit shares fell 1.1% to close at 224.30 shekels ($58.63). (Yoram Gabison)

Migdal Insurance gets new chairman

Amos Sapir will take over as chairman of Migdal Insurance, replacing Anat Levine, who announced her plans to step down last July. Sapir has been chairman of Standard & Poor’s Maalot, the local bond rating agency, and previously held a number of positions in the Clal group. Levine, who also served as CEO of Migdal Holdings, the insurer’s parent company, announced her plans to step down after just six months on the job. Two months ago, Oded Sarig, a former commissioner for capital markets, insurance and savings, was named CEO of Migdal Holdings. (Eran Azran)

Last-minute spike leaves TA-25 higher

Weighed down by the battle over the 2015 budget and Japan’s slide into recession, the TA-25 index spent most of its day under water yesteday, only to pop its head above the surface at the very end of session thanks to surging bank shares. The benchmark index ended at 1,447.35 points, a gain of 0.08% for the day, while the TA-100 rose almost 0.2% to 1,291.85. Turnover exceeded the 1 billion-shekel mark for the first time in seven sessions, with 1.06 billion shekels ($280 million) in shares changing hands. Hapoalim led the rally in bank stocks, ending up 2.5% at 19.65 shekels. Mizrahi-Tefahot added 1.7% to 42.44 shekels, Leumi 1.4% to 13.47 and Israel Discount 1.2% to 6.03. Teva Pharmaceuticals also rose sharply, adding 2.1% to close at 221.60 shekels. The government’s 10-year Shahar bond dropped 0.18% to boost its yield to 2.11%. (Eran Azran)

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