The Ticker: Gindi Reportedly Offering to Inject Capital Into Alon Blue Square

B Comm sells Bezeq shares; Discount divests FIBI stake; Elbit wins 500 million-pound U.K. contract with partner.

Nitzan Hermoni

Gindi reportedly offering to inject capital into Alon Blue Square

Gindi Holdings is offering to inject capital into Alon Blue Square if that’s what it will take to win the backing of Alon Blue Square’s bondholders and bank creditors for its offer to buy the company, sources close to Gindi said yesterday. The offer came a day before bondholders are due to meet to voice opposition to Gindi’s buying a 72.3% stake in financially troubled holding company Alon Blue Square, for 115 million shekels and an agreement to take on Alon’s debt. The sources declined to say how much property developer Gindi was prepared to inject, but market sources estimated it could be as much as 320 million shekels ($80.7 million). That would include the 115 million-shekel payment, which is due to go to Bank Hapoalim because it holds the Alon Blue Square shares as collateral. The sources said Gindi is also insisting that an accord over Alon Blue Square’s 1.2 billion in debt has to be reached before it goes ahead with the acquisition. (Yoram Gabison)

B Comm sells Bezeq shares; Discount divests FIBI stake

Two big shareholders offloaded substantial blocks of stock on Monday. Shaul Elovitz’s B Communications sold a 4.18% stake in telecoms company Bezeq for 982 million shekels ($248 million), reducing its controlling stake to just 26.34%. B Comm said it sold 115.5 million shares at 8.50 shekels each, a 3.4% discount on its Monday closing price, to institutional investors. Bezeq shares closed down 6% yesterday at 8.27 shekels. Meanwhile, Israel Discount Bank divested nearly all its remaining 9.8% stake in First International Bank, as required by regulators. Discount sold the shares for about 45 shekels each, a 5% discount on their Monday closing, for a combined 416 million shekels. The buyers were also institutional investors. First International shares dropped a combined 6.8% on Monday and yesterday to close at 43.88 shekels. However, thanks to its bigger floating, the bank’s weighting in Tel Aviv Stock Exchange indices will grow, spurring demand for index-linked investors. (Michael Rochvarger)

Elbit wins 500 million-pound U.K. contract with partner

The Israeli defense electronics firm Elbit Systems said yesterday its U.K. joint venture with Kellog, Brown and Root won a contract from the British Defense Ministry’s flight training program worth about 500 million pounds ($719 million) over 18 years. Elbit and the U.S.-based KBR each hold half of the joint venture, Affinity Flying Services, and will evenly support and benefit from the program, Elbit said. Elbit Systems and KBR formed the joint venture in 2011 to bid on the U.K. program, which is aimed at delivering air crew training for the 21st century. Affinity will provide systems and training infrastructure and maintenance and logistics support services. Shares of Elbit rose 0.3% to close at 337 shekels ($85.02). (Yoram Gabison)

Lower world oil prices pressure Tel Aviv shares

Tel Aviv shares ended lower yesterday, tracking a decline in world stock markets as oil prices fell more than 3%. The Tel Aviv Stock Exchange’s benchmark TA-25 index ended down 0.9% at 1,457.40 points, while the TA-100 fell 0.75% to 1,253.01, on turnover of 1.43 billion shekels ($360 million). Among big losers, Housing & Construction Limited declined another 4.4% to 5.50 shekels amid continuing worries about its operations in financially troubled Nigeria. Delek Group ended down 3.4% at 691.50 and Gazit Globe lost 3.7% to 29.66. The only sector to show gains for the day was tech, where Allot Communications ended 8.3% up for the session to 20.39 and Nova rose 4.2% to 37.99. Nova said an unnamed semiconductor foundry had placed an order for its equipment for an undisclosed amount. El Al Airlines rose 4.8% to end at 2.77 shekels. In foreign currency trading, the dollar strengthened close to 1% to a Bank of Israel rate of 3.9550 shekels. (Uri Tomer)