Sources inform ''Globes'' that, following the debt settlement with bondholders, Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), controlled by chairman Lev Leviev, will launch a campaign to sell subsidiaries, that will result in the company refocusing on its core business in real estate development. A proposal was presented at a recent management meeting for the sale of the company's holdings in Africa-Israel Residences Ltd. (TASE:AFHS), AFI Hotels Ltd., and Derech Eretz Highways Ltd., the franchisee of Road 6 (the Cross-Israel Highway).
Africa-Israel's 75% stake in Africa-Israel Residences, held through Africa-Israel Properties Ltd. (TASE: AFPR), will probably be the first asset to the be sold. Numerous parties are interested in the company, as housing prices in Israel soar, a fact reflected in the company's financial reports. The two leading candidates to buy the company are Yuli Ofer-controlled Melisron Ltd. (TASE: MLSR), and Tidhar Ltd.
Africa-Israel wants to sell Africa-Israel Residences by the end of the year. Africa-Israel books the company at a value of NIS 422 million, compared with its current market cap of NIS 695 million.
AFI Hotels is a wholly-owned subsidiary, after Africa-Israel delisted it from trading on the Tel Aviv Stock Exchange (TASE) in 2007 in an offer to purchase, which reflected a company value of NIS 420 million. The company operates the Crowne Plaza and Holiday Inn chains in Israel, with 2,561 rooms altogether. It also owns the Tiberias Hot Springs Spa and a 30.7% stake in the Kings City amusement park in Eilat. The company also owns a 114-room hotel in Germany, a 294-room hotel in Bucharest, Romania, and operates other hotels in Bucharest and Moscow.
Africa-Israel owns 37.5% of Road 6 operator Derech Eretz Highways.
Africa-Israel's share rose 2% in morning trading to NIS 45.30, giving a market cap of NIS 2.46 billion. Africa-Israel Properties' share rose 1.5% to NSI 57.80, and Africa-Israel Residences' share rose 4% to NIS 57.30.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2009
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