Africa-Israel Investments Ltd. (TASE:AFIL) chairman Lev Leviev is keeping Africa-Israel Residences Ltd. (TASE:AFHS) in house. Africa-Israel announced today that it is considering selling its 74.47% stake in Africa-Israel Residences to sister company Danya Cebus Ltd. (TASE: DNYA), in which Africa-Israel owns 73%.
Danya Cebus will pay for Africa-Israel Residences in a mixture of cash and/or shares in Danya subsidiary Netivei Hayovel Ltd. Other options are also under consideration. The companies have not yet agreed on a price for a possible deal, and will hire an independent outside assessor for this purpose.
Africa-Israel CEO Izzy Cohen said, "Danya Cebus recently considered a number of investment opportunities to expand its business. This measure, if and when it materializes, will provide Danya Cebus, in addition to current construction business, a proven and successful residential real estate development platform in Israel."
Africa-Israel's share price rose 2% in morning trading to NIS 19.68, giving a market cap of NIS 2.03 billion. Africa-Israel Residences' share price was unchanged at NIS 55.78, giving a market cap of NIS 703 million, and Danya Cebus' share price fell 0.1% to NIS 11.76, giving a market cap of NIS 334 million
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2010
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