Discount Investment Corporation Ltd. (TASE:DISI) today notified the Tel Aviv Stock Exchange that it will record a NIS 1.264 billion capital gain in the first quarter of 2010 on its investment in retail chain Shufersal Ltd. (TASE:SAE; Pink Sheets:SSLTF).
The capital gain results from Discount Investment's increased holding in Shufersal after the completion of an offer to purchase. The company calculated the difference between the value of the investment in Shufersal as recorded in their accounting books and the fair value of Shufersal.
Discount Investment offered to buy 18 million Shufersal shares at NIS 23.5 each. The company received offers from investors for 29 million shares, 8.31% of Shufersal's equity.
The success of Discount Investment's offer to purchase increases its holding in Shufersal to 46.2% of equity and 50.3% of voting rights.
In early afternoon trading on the TASE, Discount Investment's share was up 0.04% to NIS 93.64. The share of IDB Holding Corp. (TASE:IDBH), controlled by Nochi Dankner, was down 0.14% to NIS 10.29, and Shufersal's share was up 0.57% to NIS 23.03.
Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2010
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