Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), controlled by chairman Yosef Maiman, today announced that it will buy back up to $10 million of its three bond series that are traded on the Tel Aviv Stock Exchange (TASE). The announcement came after the share price plunged on both the TASE and Nasdaq following an attack on a pipeline in Sinai, which again halted natural gas deliveries by Egypt's East Mediterranean Gas Company (EMG) to Israel and Jordan.
Ampal owns 12.5% of EMG. Ampal's share price fell 16.7% on the TASE yesterday to NIS 4.74, and 14.6% on Nasdaq to $1.41, giving a market cap of $79 million. The share is unchanged in morning trading on the TASE today. The share has shed almost half its value since the beginning of the year.
The bad news at Ampal has also affected its three bond series, whose prices have fallen sharply resulting in an equivalent jump in their yields. The company is apparently trying to signal confidence to the market and to ease pressure from selloffs by bondholders.
Ampal has about NIS 1 billion in tradable bonds on the TASE. Prices for Ampal's bonds fell 7-9% yesterday, raising the yields to 12-13%.
Ampal will buy back the bonds in shekels, using available cash and possible future borrowings.
Published by Globes [online], Israel business news - www.globes-online.com - on April 28, 2011
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