IDB units Discount Investment and Koor, as well as Migdal, could be relegated from the index if the original threshold criteria are restored
Gains by the leading Tel Aviv Stock Exchange (TASE) indices so far this year is prompting the TASE's board of directors to review the need to extend the directive issued at the height of the crisis in late 2008. The public holding threshold in Tel Aviv 25 and 100 companies was lowered from 25% to 20%, and the minimum value of the public's holdings in the companies was also lowered. The directive was set for one year.
Ahead of the upcoming update of the indices at the end of 2009, the TASE has been conducting simulations. The results will form the basis for deciding whether to gradually restore the original threshold criteria of a public holding of 25% and a value of the public holding of NIS 600 million for inclusion in the Tel Aviv 25 Index.
If the original criteria are restored, four changes are likely in the make-up of the Tel Aviv 25 Index. IDB Holding Corp. Ltd. (TASE:IDBH) unit Discount Investment Corporation (TASE: DISI) and its subsidiary Koor Industries Ltd. (TASE:KOR), as well as Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) will be relegated from the index because the public holdings in them are less than 25%. Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) will be relegated because the value of the public holding is less than NIS 600 million.
The Israel Securities Authority has to approve the TASE board's decision.
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2009
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