The Ticker: Kibo Wins Keyboard-branding Pact With NBA

Two North American property developers selling bonds in Tel Aviv; Leumi sells two Manhattan buildings to Nakash brothers for $109 million; Biotech shares tumble in mixed market.

AFP

Kibo, a subsidiary of Noam Lanir’s Apply Advanced Mobile Technologies, said on Sunday it signed an agreement with the U.S. National Basketball Association to create NBA-branded smartphone keyboards and divide revenues from the business. The deal marks the first in the U.S. sports market for Kibo, which has signed deals with soccer teams like Real Madrid and players like Cristiano Ronaldo, and counts about 14 million downloads. “Entering the American market with the NBA is very significant,” Oron Zell, Lanir's partner and Kibo's CEO told TheMarker. “NBA fans and the American market in particular download the most applications and spend a lot on mobile and Internet. The keyboard will enable them to monetarization more effectively.” Kibo lost 3.5 million shekels ($920,000)  in the first nine months and burned through 10 million shekels in capital since it was founded, but sources close to the company said it expected to generate its first real revenues in 2016. Apply shares rose 2.5%  to close at 11.24 shekels (Shelly Appelberg)

Two North American property developers selling bonds in Tel Aviv

The parade of American property developers selling bonds on the Tel Aviv Stock Exchange has featured companies led by Jews. But now Delshah Capital, which is headed by Indian-American Michael Shah, is gearing up to raise some 300 million shekels ($78.6 million) in debt. Delshah filed a prospectus last week and is now conducting a roadshow with institutiona in Tel investors. Delshah, whose properties are mainly in chic Manhattan areas like SoHo and the Meatpacking District, is expected to get a medium-grade A rating. The company generated $17.3 million in rental income in the first nine months of the year and earned $8.9 million, but has negative working capital. Meanwhile, a Canadian developer Urbancorp, which is controlled by Alan Saskin, completed on Thursday the institutional tranche of its first-ever bond sale in Tel Aviv. The company, which received an A3 rating from Midroog, raised 148 million shekels at 8.15% for an average term of 2.9 years. (Eran Azran)

Leumi sells two Manhattan buildings to Nakash brothers for $109 million

Bank Leumi and the Israeli-American Nakash brothers failed to come to terms over selling control of Jerusalem Economy Corporation, but over the weekend they did reach an agreement over two piece of Fifth Avenue real estate in Manhattan. The bank said a group led by the Nakash brothers agreed to pay $109 million for two adjacent buildings that had housed a Leumi New York branch. The Nakash group, which outbid a host of other potential buyers like Harel Insurance, plans to use the structure as headquarters for their jeans and apparel empire. The two sides are still at odds over the abortive JEC deal, with Leumi claiming the Nakash group must pay a 35 million-shekel penalty. Shares of Leumi, which said it expected to post a $96 million pre-tax gain on the sale and help improve its capital adequacy ratio, ended 0.5% higher at 13.90 shekels ($3.64).  (Michael Rochvarger)

Biotech shares tumble in mixed market

Tel Aviv shares ended mixed on Sunday, with biotech shares slumping but most of the market finishing the day higher. The benchmark TA-25 index ended 0.4% higher at 1,567.40 points while the TA-100 ended almost unchanged at 1,348.46, as 671 million shekels ($175.8 million) in shares changed hands. Perion Network extended its rally, adding 3.6% to end at 10.81 shekels. Other gainers were Teva Pharmaceuticals, which advanced 1.8% to 251.20 and Elbit Systems, which added 1.8% to 344.50. Mannkind led biotech companies lower, falling 9.8% to 7.40 shekels. In the fixed-income market, the government’s 10-year shekel bond dropped 0.2% to raise its yield to 2.29%. Adama, the agrochemicals company whose bonds are traded on the TASE, said it was paying a $100 million dividend to its two shareholders , one of whom is Discount Investment Corporation. Discount shares  fell 0.4% to 7.04 shekels. In foreign currency trading Friday, the euro jumped 2.3% to a Bank of Israel rate of 4.1950 shekels.  (Shelly Appelberg)