Sources inform ''Globes'' that Polar Investments (TASE: PLR) is in talks to sell its holdings in CityPass, the franchisee for the Jerusalem light rail project. Polar currently holds 27% of CityPass. Among those in talks with Polar are private equity fund Israel Infrastructure Fund, headed by Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Adv. Yehuda Raveh, and Yaron Kestenbaum, and another party. Polar will reportedly sell its holdings at a lower price than recorded on CityPass's books.
Senior sources close to CityPass were informed about the talks unofficially. They said that this would represent an opportunity for the new investors, given the fresh start that has now been made with the government and Jerusalem Municipality. "Anyone who buys Polar's shares will get an excellent deal. The price is not high, and there is now more certainty than there was in the past," they added.
According to transport sector sources, Polar entered the project as a financial investor and now wishes to sell its holdings in view the difficulty it has run into, as well as the policy of the company's new owners of focusing on real estate business. CityPass's other shareholders are Ashtrom Properties Ltd. (TASE:ASPR) (27.5%), Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) (20%), Alstom SA (LSE: ALS; Euronext:ALO) (20%), and Veolia unit Connex (5%).
Polar previously held 37.5% of CityPass. At the end of 2004 it sold 10% of its stake to Harel, which took a 20% stake in the project, diluting the stakes held by Ashtrom and Polar.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008