Discount Investment announces NIS 300m buyback program

Eduardo Elsztain Photo: Ronny Schitzer
Eduardo Elsztain Photo: Ronny Schitzer

The company says that given the market prices of its bonds, repurchasing them represents an appropriate use of its cash.

Yesterday, Discount Investment (TASE: DISI), a holding company controlled by Eduardo Elsztain, approved a buyback program for its shares and bonds to the tune of NIS 300 million.

<p>The company said that the program was effective immediately, and that purchase of shares and bonds would take place in accordance with opportunities on the market, at prices and scope decided by the company's management.

<p>The Discount Investment board of directors said in the announcement of its decision, "Having regard to the prices of the bonds on the stock exchange, the board is of the view that buying them back is attractive for the company, and will enable it to reduce its financial debt and its financing expenses."

<p>Before approving the program, the board examined the sources of finance available to the company for meeting its liabilities and a four-year cash flow forecast, also taking into account longer term factors. "Implementation of the program will not have an adverse effect on the company's ability to repay its debt and meet its current and expected liabilities when they become due," Discount Investment's announcement says. "The company estimates that given market conditions and the prices of its bonds, their repurchase will represent an appropriate use of part of the cash held by the company."

<p>Discount Investment also sees the buyback program as a way of improving its capital structure and financial ratios.

<p>According to Discount Investment, any gains that might arise from implementation of eth program will be offset by current operating losses, so that no tax liability should be created.

<p><i>Published by Globes, Israel business news - <a href=http://en.globes.co.il>en.globes.co.il</a> - on June 27, 2019</i>

<p><i>© Copyright of Globes Publisher Itonut (1983) Ltd. 2019</i>

Eduardo Elsztain Photo: Ronny Schitzer
Eduardo Elsztain Photo: Ronny Schitzer
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