The Ticker: JEC Rejects Summit’s Offer for Half Its Industrial Buildings’ Stake

Kibbutz sells shares, voting rights in Caesarstone to private equity fund Tene | Shefa Yamim plans to raise $10 million in London IPO | Ben-Moshe completes purchase of Alon Blue Square group.

Polished diamonds

JEC rejects Summit’s offer for half its Industrial Buildings’ stake

Jerusalem Economy Corporation Sunday rejected an offer by Summit Real Estate to buy half its 78% holding in Industrial Buildings Limited. JEC, in which Summit itself is the biggest shareholder, didn’t offer any explanation for rejecting the 600-million-shekel ($159.6 million) offer, but the most likely reason is that Industrial Buildings’ shares have rallied in recent weeks and Summit’s offer now values the company at an 18% discount to its Tel Aviv Stock Exchange market cap. Psagot Investment House, which holds 7.3% of JEC, sent a pointed letter to JEC CEO David Zavida, questioning the value of the offer. Psagot hinted that Summit was using the inside information available to its directors on the JEC board and hoped to get Industrial Buildings on the cheap. Industrial Buildings shares ended down 3.5% at 4.71 shekels. Summit was down 3.2% to 23.12 shekels. An offer by the Los Angeles-based brothers Naty and Ofer Saidoff for a controlling 30% stake in JEC remains open. (Michael Rochvarger)

Kibbutz sells shares, voting rights in Caesarstone to private equity fund Tene

Kibbutz Sdot Yam on Wednesday approved selling a block of shares in Caesarstone and handing over most voting rights to the Tene private equity fund. The vote came after Tene beat out rival offers from CVC, Carlyle and Apax, three of the world’s leading private equity funds, to buy out the kibbutz’s 32% stake in the company, a maker of engineered quartz countertops. Under the agreement, Tene is buying a 2.8% stake in Caesarstone at $43.50 a share and has an option for as much as another 5.7% over the next five years at $43 a share, with a built-in 3% escalator. Tene also gets the rights to name two of the three directors Sdot Yam appoints and proxy voting rights on the kibbutz shares for most issues. The deal comes after a 60% drop in Caesarstone shares in the past 14 months and a boardroom battle over the kibbutz nominees to the board. Caesarstone shares ended down 6% at $35.73 in New York on Friday. (Yoram Gabison)

Shefa Yamim plans to raise $10 million in London IPO

Shefa Yamim, the Tel Aviv Stock Exchange-traded company exploring for precious gems near Haifa guided by a prophecy from the last Lubavitcher rebbe, said it planned to raise $10 million in London with an initial public offering in its 75%-owned Shefa Yamim (ATM) unit. The company said it has retained an unidentified London-based brokerage that specializes in natural-resource companies to manage the offering and expects to complete it by the end of the year. The final valuation for Shefa Yamim ATM, which is responsible most of the company’s operations, will be determined close to the offering date. The shares will be traded on the London Stock Exchange’s AIM exchange for small-cap companies. To raise the money needed to finance the IPO, Shefa Yamim said it would raise 3 million shekels ($800,000) from shareholders. Shefa Yamim shares, which have plunged 90% in the past five years, ended 2.6% higher Sunday, at 1.32 shekels. (Eran Azran)

Ben-Moshe completes purchase of Alon Blue Square group

Moti Ben-Moshe completed Sunday the acquisition of what remains of the Alon Blue Square holding company, paying shareholders 113 million shekels ($30 million) and committing himself to injecting another 600 million shekels into the group this year and next and taking the company private. “I am determined to upgrade business operations, to enhance value and develop new segments,” Ben-Moshe said in a letter to employees of Alon Blue Square, whose CEO is Avigdor Kaplan. The company, which once controlled a retail operation with the Mega supermarket chains at its flagship, has been pared back to owning 4% of the Tamar natural-gas field, 9.6% of the Delek US energy company, 30% of the Route 6 toll road, 8% of Israeli energy company Dor Alon and about 500 million shekels in cash. But it also owes some 1.8 billion shekels. In July, creditors holding 1 billion shekels of that debt agreed to a bailout plan with Ben-Moshe, an Israeli who made his fortune in Germany. (Omri Zerachovitz).