IDB Development valued upwards to NIS 980m

The previous average valuation of the company was NIS 822 million.

Five days before the Tel Aviv District Court's deadline to submit bids for IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, court-appointed expert Eyal Gabay has released an updated valuation for its wholly-owned subsidiary IDB Development Corporation prepared by MNS Consulting KYC Israel Ltd., which gives it a net asset value (NAV) of NIS 980 million. The previous average valuation of the company was NIS 822 million.

This means bids for IDB Holding must be higher than Gabay's previous valuation. In other words, on Sunday, the bidders will have to offer more money or more shares to IDB Holding's bondholders. This is especially true for the bondholders' partner, Eduardo Elsztain, which wants to invest NIS 770 million in IDB on the basis of the NIS 822 million valuation for IDB Development.

The updated valuation values Koor Industries Ltd. (TASE:KOR) at NIS 3.75 billion, up from NIS 3 billion in the valuation made for its proposed merger with parent company Discount Investment Corporation (TASE: DISI). The court will rule on this merger on Thursday.

MNS adds that if Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) is sold at a company value of NIS 4.6 billion, the valuation of IDB Development will be NIS 1.03-1.2 billion. MNS raised its valuation of each of IDB units Clal Insurance, Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), and Makhteshim Agan Industries Ltd. by NIS 100 million, and raised the valuation of Shufersal Ltd. (TASE:SAE) by NIS 150 million.

Published by Globes [online], Israel business news - - on October 28, 2013

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

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