Citigroup Israel and IBI are distributing the shares for a total of NIS 475 million.
Ofer Holdings Group is loaning 130,000 Israel Corporation (TASE: ILCO) shares, 1.7% of the company. Citigroup Israel and IBI Investment House Ltd. (TASE:IBI) are distributing the shares at 2-3% less than Israel Corp's opening share price today, for a total of NIS 475 million.
Israel Corp's share price rose 0.2% in morning trading to NIS 3,662 giving a market cap of NIS 28.1 billion. The share price has fallen 15% since the beginning of 2011, but is up 36% for the preceding 12 months.
The share loan is not a sale; at some point, Ofer Holdings will buy back the shares at their market price.
Capital market sources told "Globes" that Ofer Holdings is seeking financing for other investments. Idan Ofer and Udi Angel own Ofer Holdings in equal shares.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011