Clal Electronic Industries to Record NIS 75 Mln Capital Gain on Sale of Further Package of ECI Shares
The shares, constituting 2% of ECI’s capital, sold at a price of $22.4 further to yesterday’s sale of 0.2% of the shares.
Amir Eisenberg
Clal Electronic Industries to Record NIS 75 Mln Capital Gain on Sale of Further Package of ECI Shares
The shares, constituting 2% of ECI’s capital, sold at a price of $22.4 further to yesterday’s sale of 0.2% of the shares.
Amir Eisenberg
A few days after publishing its first quarter results for 1997, showing a decrease in net profit, Clal Electronic Industries (Clal Electronic Industries) has announced that in the second quarter, it will publish a much better bottom line.
Yesterday, Clal Electronic Industries sold a package of shares constituting 0.2% of the capital of ECI Telecom. The price paid was NIS 12 million, and a capital gain of NIS 8 million will be recorded on this transaction in the second quarter of 1997. Yesterday’s notice, however, proves to be merely a hint of a mammoth transaction, evidently concluded in recent days, whereby Clal Electronic Industries sold 1.5 million ECI shares for NIS 114 million ($33.6 million).
The sale may very well have been transacted last night, in the course of Wall Street trading, since the shares of ECI Telecom yesterday attracted exceptional volumes of activity. In the course of last night’s trading in ECI, close on 3.5 million shares changed hands, at a consideration in the range of $78 million. Another figure that may perhaps indicate that the deal was finalised in the course of trading in New York, is the transaction price. Most of the shares sold at a price of $22.4-22.5 per share, similar to last night’s closing price for the ECI share.
The shares whose sale is reported by Clal Electronic Industries constitute 2% of the capital of ECI Telecom, and will generate a NIS 75 million capital gain for Clal Electronic Industries. Together with the transaction reported yesterday, Clal Electronic Industries sold altogether 1.65 million ECI shares at an aggregate consideration of NIS 126 million ($37.2 million). Total capital gain on the transaction, which will be carried in its entirety to the second quarter of 1997, will amount to NIS 83 million ($24.5 million). Following this transaction, Clal Electronic Industries will hold 24% of the shares of ECI, still sufficient to preserve its status as the company’s biggest shareholder.
Clal Industries too, which holds 54% of the shares of Clal Electronic Industries, will of course benefit from the profits of this deal, recording altogether a capital gain of NIS 44 million in its second quarter reports.