The Ticker: Internet Gold’s Offering of Shares, Warrants Could Jeopardize Banks’ Control

Internet Gold’s offering of shares, warrants could jeopardize banks’ control ■ Rami Levy enters the travel business in joint venture with Daka 90 site ■ Delek Royalties future profits to be $100m lower under amended prospectus ■ Psagot Investment House workers stage a one-day strike

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Internet Gold’s offering of shares, warrants could jeopardize banks’ control  

Internet Gold, the company that controls Bezeq, could fall out of the hands of the creditor banks that now control it when the company conducts a public offering Tuesday. Once controlled by telecoms tycoon Shaul Elovitch, the banks seized a 54.7% stake a month ago. However, Internet Gold is desperately in need of cash and plans to raise 110 million shekels ($30.9 million) in an issue of new shares and warrants. If the warrants are exercised,  the banks’ combined stake would be diluted to just over 35%, while the holders of all the equity in this week’s offering will have 36%. Besides the Saidoff brothers, who had unsuccessfully sought to gain control of Bezeq by buying Elovitch’s Eurocom holding group, several other investors are believed to be weighing buying into the share issue and one could theoretically emerge in control. The banks could still block a takeover by buying into the offering themselves. (Michael Rochvarger)

Rami Levy enters the travel business in joint venture with Daka 90 site

Rami Levy, the Israeli discount supermarket chain, is adding air travel to its expanded offerings of cellphone service and drugstores. In a joint venture launched Sunday with the travel site the 90th Minute (Daka90), Rami Levy loyalty program members will be able to buy flights, hotel rooms and tour packages at what the two said would be special rates. Rami Levy isn’t the only food retailer to eye Israel’s growing travel market since the Open Skies reform caused a surge in air travel by cutting airfares and adding destinations. In January, Super-Sol, Israel’s biggest supermarket chain, announced a joint venture with the Gulliver online travel agency, yet to launch. Rami Levy hopes its travel joint venture will raise the profile of the chain’s rewards program, encourage more shoppers to uses its house credit card and boost supermarket sales. Rami Levy shares ended 0.7% down at 176.30 shekels ($49.55). (Gabriela Davidovich-Weisberg)

Delek Royalties future profits to be $100m lower under amended prospectus

Profits due shareholders of Delek Royalties, the Delek Group spin-off formed to take a share of the Tamar gas fields profits, will be more than $100 million less than originally forecast in its prospectus. Delek Royalties was ordered to amend the prospectus by the Israel Securities Authority in response to an article by Shlomo Shuv, a columnist for TheMarker. The amended prospectus revises the value of the rights being transferred from Delek Energy to the new entity, which will no longer be at a $70 million book value but at the fair value of $180 million. That will be result in increased depreciation expenses of $110 million and reduce future profits and dividends. Delek Royalties, which is expected to enjoy 5 billion shekels ($1.4 billion) in overriding royalties from Tamar, is conducting the equity portion of its two-stage fundraising this week, selling a 60% stake at a company valuation of about $200 million. (Eran Azran)

Psagot Investment House workers stage a one-day strike

It manages 180 billion shekels ($50.6 billion) in assets, but on Sunday it wasn’t answering the phones. Some 800 employees of Psagot, Israel’s biggest investment house, staged a one-day strike to protest what union leaders said was the failure to reach a collective bargaining agreement after two years of negotiations. Workers canceled marketing meetings and refused to operate computer networks, although management said it did its best to provide customer service. Employees began organizing in August 2016 through the Koach La Ovdim union and declared a formal labor dispute at the start of May, entitling them to call a strike after a two-week cooling-off period. The union has rejected management’s insistence that pay hikes be tied to the company’s financial performance and has refused to divulge information needed to proceed with the talks. “That demand was no parallel in collective agreements, including those in the financial services industry,” said Shlomi Lugasi, the shop steward. (Assa Sasson)

Tel Aviv Stock Exchange closes broadly higher in light turnover

Tel Aviv shares ended broadly higher Sunday. The TA-35 and TA-125 indexes each finished about 0.5% higher at 1,519.78 and 1,371.49 points, respectively, on light turnover of 487 million shekels ($137 million). Plasson led gainers on the TA-125, rising 8.2% to 164.80 after reporting a 45% increase in first-quarter profit to 35 million shekels. Discount café and supermarket chain Cofex slid 3.2% to 7.46 after it slid into the red in the first quarter by 4.5 million shekels. Enlight gained 4.1% to 1.96. The alternative-energy company said Sunday it was in talks to buy a 300-megawatt wind energy project in Western Europe, in which it would invest a total of 320 million euros to 350 million euros ($373 million to $408 million). Clal Biotechnology rose 2.7% to 3 shekels. Clal’s  5%-owned Neon Therapeutics, a Massachusetts-based developer of cancer drugs, filed Thursday for a $100 million initial public offering. Nice rose 1.6% to 380, breaking a four-session string of losses. (TheMarker)

The logo of Bezeq Israeli Telecommunication Corp. is seen at the company's headquarters in Tel Aviv, IsraelCredit: Ahikam Seri/Bloomberg

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