Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) has become a party at interest in oil and gas exploration company Modiin Energy LP (TASE:MDIN.L), controlled by Yitzhak Sultan.
In a notice to the Tel Aviv Stock Exchange (TASE) today, Modiin Energy said that Migdal participated in a rights issue by the company. Migdal bought 17.25 million units giving it a 6.82% holding (10.75% fully diluted), and also bought 25.6 million warrants.
Migdal is Israel's largest insurance company. Modiin Energy's share is on the TASE's restricted list. The share rose 200% since the beginning of the year, but has fallen back in the past few days. The share fell 12.5% by midday today to NIS 0.01, giving a market cap of NIS 5 million.
Migdal's share rose 1.7% by midday to NIS 7.13, giving a market cap of NIS 7.35 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2010
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