Bank Leumi (TASE: LUMI) investment banking arm Leumi Partners will invest an additional NIS 139 million in Israel Infrastructure Fund (IIF), which owns Derech Eretz Highways Ltd., the franchisee of Road 6 (the Cross-Israel Highway, also known as the Yitzhak Rabin Highway). Leumi Partners owns 9.7% of IIF.
Leumi Partner's investment is through a deal in which IIF is acquiring the 25.5% stake of Shikun & Binui Holdings Ltd. (TASE: SKBN) in Derech Eretz for NIS 700 million. When the deal is closed, IIF will own 51% of Dereck Eretz.
The new investment brings Leumi Partner's investment in Road 6 to NIS 266 million, after it invested NIS 127 million in it in late 2010.
Leumi Partners CEO Yaron Bloch said, "The additional investment in Derech Eretz should create an attractive return. The project has proven itself over the years as a business success."
Leumi Partners is also in advanced talks a separate deal to sell 5% of drug store chain Super Pharm Israel Ltd. to Israel Discount Bank (TASE: DSCT) for NIS 70 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 23, 2012
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