The Ticker / Delta Galil Buys American Pajamas Maker P.J. Salvage

Partner to lay off hundreds of workers; RedHill drops after raising $40m in New York; TA-25 index crosses 1,700 mark after Nasdaq hits high.

Rami Shllush

Delta Galil buys American pajamas maker P.J. Salvage
Delta Galil Industries, the maker of undergarments, said Sunday it had agreed to buy the P.J. Salvage brand name and other assets from the American company Loomworks Apparel for $37 million. It said the final price hinged on changes in the company’s working capital structure before the sale is completed at the end of the month, and might grow by another $3.75 million if the company meets profit milestones for 2016 and 2017. “Buying this highly regarded brand is another step in expanding our branded operations. We plan to leverage the acquisitions to expand P.J. Salvage’s presence among retailers,” Delta’s CEO Isaac Dabah said in a statement. Using luxury fabrics and chic patterns, California-based Loomworks makes pajamas and intimate apparel, and counts Natalie Portman and Kim Kardashian among its customers. Its sales are expected to reach $25 million this year. Delta shares closed up 2.8% at 123.70 shekels ($32.39). (Eran Azran)

Partner to lay off hundreds of workers
Partner Communications employees is to buy out the contracts of hundreds of its 4,000 employees under an unprecedented agreement that Israel’s second-biggest mobile communications company reached with unions over the weekend. Under the agreement, employees with more than three years at the company, except those in sales and marketing, can join the program over the next two weeks with generous terms. In return for getting the layoffs, Partner agreed to reduce the number of employees under personal contracts and make no further staff cuts this year until a new collective labor agreement is signed. Partner, which like the other cellphone companies has seen profits come under pressure from increased competition, said it would take a 35 million-shekel ($9.17) charge in the third quarter for the deal. Partner shares, which like mobile operators have been rallying,  jumped 4.4% to 14.70 shekels in heavy trading. (Haim Bior)

RedHill drops after raising $40m in New York
RedHill Biopharma shares plunged on the Tel Aviv Stock Exchange on Sunday after it raised $40 million in a secondary offering of shares on Wall Street over the weekend. RedHill, which is developing drugs for inflammatory and gastrointestinal diseases, said it sold about 2.46 million American Depository Shares, each representing 10 of its ordinary shares traded on the Tel Aviv Stock Exchange at $16.25 each. It was the third Israeli biopharm company to raise capital that day, after Chiasma’s $102 million initial public offering and a $67 million secondary by NeuroDerm. RedHill, which gave underwriters led by Nomura and Roth Capital Partners an option to buy another approximately 369,000 shares, said it would use the proceeds for research and development, potential acquisitions and general corporate purposes. RedHill shares closed down 5.1% to 6.40 shekels ($1.68). (Yoram Gabison)

TA-25 index crosses 1,700 mark after Nasdaq hits high
The Tel Aviv Stock Exchange’s TA-25 index crossed the 1,700 mark for the first time in nearly a month after Wall Street’s Nasdaq stock index ended at a record high on Friday on a rally in Google shares. The TASE’s benchmark  index finished 0.7% higher at 1,705.93, while the TA-100 added close to 0.8% to 1,4761.73, on turnover of 652.5 million shekels ($170.9 million). Cellphone shares extended their rally, with Cellcom Israel leading TA-100 stocks higher on a 5.6% gain to 19.90 shekels. TowerJazz led the most actives, but was down 1.4% to 51.40 shekels. Alon Blue Square tumbled 7.7% to 4.62 as bondholders added their names to the list of creditors making demands in exchange for consenting to a bailout for the holding company’s Mega supermarket chain. In the fixed-income market, the government’s 10-year shekel bond rose 0.23% to cut its yield to 2.42%, while the inflation-linked Galil bond was up 0.17% to a yield of 0.79%. (Shelly Appelberg)