Koor sells further block of Credit Suisse shares

Koor has sold 6.2 million Credit Suisse shares for 175.9 million Swiss francs.

IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) has sold another bloc of Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) shares. In a notice to the TASE today, the company said that, in the past few days, it had sold 6.2 million Credit Suisse shares for 175.9 million Swiss francs (NIS 683 million).

Koor says that it will report a net profit of NIS 17 million on the sales in its financial report for the fourth quarter of 2013.

Koor said that it would use 69.8 million Swiss francs of the sale proceeds to repay the loan taken from Citigroup Inc. (NYSE: C) and Morgan Stanley (NYSE: MS), which will reduce the outstanding loan to 148 million Swiss francs (NIS 577 million) against a lien on 13.12 million Credit Suisse shares.

Koor now owns 13.86 million Credit Suisse shares, amounting to 0.87% of the bank's share capital. The stake is currently worth 394 million Swiss francs.

Since Koor changed its investment policy in Credit Suisse, it has sold 17.2 million shares for 488.4 million Swiss francs. Koor will report a net profit of NIS 149.3 million on sales of Credit Suisse shares in its financial statements for the third quarter, as well as a NIS 247.2 million gain on the revaluation of the holding at the end of the quarter. In addition, the difference between the value of the current balance of the company's Credit Suisse holding and its value at the end of the third quarter is NIS 43 million.

Published by Globes [online], Israel business news - www.globes-online.com - on October 13, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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