B. Gaon Holdings Ltd. (TASE: GAON) CEO Shai Preminger has met with a group of 50 institutional investors interested in investing in the company, where he outlined the company's three core businesses: retail; financial services; and water and cleantech technologies.
After the meeting, Preminger said, "We are currently Israel's most focused investment company. There is no place for an investment company like us to have too many activities; we should only do what we know how to do best."
Preminger added, "Our goal is to increase activity through acquisitions of the controlling interest or partnerships in controlling cores. We want to improve the companies we invest in, develop their business, and also develop the possibility for an IPO, merger, or acquisition."
As for future activity by the company founded over a decade ago by the late Benjamin Gaon, Preminger said, "We havecash available for more investments in our three business areas. The objective is to increase activity." He did not specify possible investment channels, but said that options were under review both in Israel and overseas.
In its water technologies and cleantech holdings, held through Gaon Agro Industries Ltd. (TASE: GAT), Gaon Holdings had annual return on investment of 19% on its holding in Middle East Tube Ltd. (METCO) (TASE: TUBE). Gaon Agro acquired the controlling interest in METCO in 2000 at a company value of NIS 110 million, and has since made an 87% return on the investment.
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2010
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