Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev, has sold subsidiary Africa-Israel Residences Ltd. (TASE:AFHS) to sister company Danya Cebus Ltd. (TASE: DNYA) for NIS 647.9 million in cash. Danya Cebus, Africa-Israel's contracting arm, will buy 9,383,070 shares in Africa-Israel Residences, 74.47% of the company, reflecting a company value of NIS 870 million.
The TASE suspended trading in the shares of all three companies until just before noon.
In August, "Globes" reported that Africa-Israel was considering selling Africa-Israel Residences to Danya Cebus, in which Africa-Israel owns 73%.
The audit committee of Danya Cebus' board of directors has approved the sale, which still requires approval of its shareholders. The company will convene a general shareholders meeting in December.
Africa-Israel will see a net cash flow in the full amount of the sale, but will not report an accounting profit, because the sale is a parties at interest deal.
Africa-Israel's share price rose 3.2% by early afternoon to NIS 26.39, giving a market cap of NIS 2.69 billion. Africa-Israel Residences' share price fell 1.7% to NIS 70.90, giving a market cap of NIS 908 million, and Danya Cebus' share price rose 8.1% to NIS 17.28, giving a market cap of NIS 490 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2010
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