The Ticker: FIMI Fund Invests $40 Million in Israel Aerospace Unit ImageSat

Supersol credit card to switch from Leumi to Cal; Maytronics’ control of pool market is in danger; TASE ends lower, dragged down by Teva

Employees at work in an Israel Aerospace Industries hangar, October 26, 2017.

FIMI fund invests $40 million in Israel Aerospace unit ImageSat

State-owned Israel Aerospace Industries said on Sunday it signed a deal with the FIMI private equity fund to invest in IAI subsidiary ImageSat (ISI). FIMI will invest $40 million in the commercial provider of satellite imagery services, for 53.6 percent of ImageSat’s capital, IAI said. Under the terms of the deal, ImageSat will acquire a new, high-resolution observation satellite, the EROS-C, and on the closing date it will pay $35 million as part of ISI’s debt repayment. FIMI will receive preferred shares in which a profit-sharing mechanism will be operated between IAI and FIMI. Completion of the deal is subject to the approval of the Defense Ministry and the antitrust authority. “Space continues to be at the heart of IAI’s business strategy. The combining of forces with FIMI will create synergy between technological and business capabilities,” said IAI CEO Joseph Weiss. (Reuters)

Supersol credit card to switch from Leumi to Cal

Israel’s biggest food retailer, Supersol, reported on Sunday that it had signed a memorandum of understanding over the weekend with credit-card company Cal to manage and operate its Supersol credit-card club. Supersol, which is part of the IDB group, is thus ending its decade-long relationship with Leumi Card, which is owned by Bank Leumi (80%) and the Azrieli Group (20%). Israel Discount Bank controls 72% of Cal, with First International Bank of Israel holding the other 28%. The two sides agreed to complete negotiations within six months. The club has more than 500,000 members. The deal will be valid through the end of 2027, with options to extend the partnership by two years at a time. “The club in its new incarnation will offer customers a variety of significant benefits alongside technological innovation,” said Cal CEO Doron Sapir. (Michael Rochvarger and Yoram Gabison)

Maytronics’ control of pool market is in danger

Maytronics, which develops and produces robots for cleaning swimming pools, is in danger of losing its dominance in the market after two competitors, French Zodiac and Spanish Fluidra, announced a merger, which is expected to close early next year. Maytronics has a 41% stake in the private pool market and 29% of the public pool market. The Europeans’ announcement on Friday is subject to a vote by Fluidra shareholders and antitrust authorities. Such a merger would give them a 48% and 23% share, respectively, of the private and public pool markets. “The company took into account its risk factors and scenarios of such or other business deals in the field,” the company reported to the stock market. “The company does not expect an impact on its business in the immediate term, and it is learning the significance of the merger announcement.” Shares of Maytronics fell 1.6% on the Tel Aviv Stock Exchange, to 15.92 shekels ($4.50). (Omri Zerachovitz)

TASE ends lower, dragged down by Teva

Trading on the Tel Aviv Stock Exchange ended slightly lower, pulled down by Teva Pharmaceuticals, which slid 5% to 40.26 shekels ($11.50). The troubled stock has dropped 13.6% since Thursday. The company’s market cap is now less than that of Perrigo, which moved up 0.7% to 291 shekels. Teva’s market cap was surpassed earlier this year by Mylan, whose share price ended up 0.6% at 124 shekels. The TA-35 weakened 0.2% to 1,429.79, while the TA-125 shed 0.1% to close at 1,303.10. The Bank Index dropped 0.2% to 1,836.71. Gas shares continued their precipitous drop, as the gas index sunk 2.2% to 866.04. Mazor Robotics was among the big winners, gaining 5.6% to close at 106.70 shekels, while Nice moved ahead 2.1%, ending the day at 301.40 shekels – bolstered by positive reactions to its financial reports. Frutarom added 0.5%, reaching 292.80 shekels. El Al shares dove 4.2% to 1.71 shekels and are now down 50% over the past 12 months. (Shelly Appelberg)