Kenon Holdings controlled by Idan Ofer, has liquidated its remaining stake in Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM). "Globes" has learned that Kenon recently sold 1.7 million series 9 Tower warrants to institutional investors for some $13 million. The warrants, exercisable for Tower shares until July 27, represent 2.2% of Tower's share capital, assuming they are exercised in full.
This completes the process of Kenon's exit from Tower. The warrants sale was preceded by a distribution of Tower shares held by Kenon as a dividend in kind to its shareholders. Ofer himself sold the shares he received, through Kirby Enterprises, for tens of millions of dollars. Ofer, who formerly controlled Tower, still holds 4.8% of the company through Kirby.
Last year, before the dividend in kind, Kenon held 30% of Tower. The distribution took place after an impressive run by Tower, with its share price having risen 300% since December 2013. The trend has continued recently, with the share price rising about 25%, pulling the series 9 warrants up to a similar extent. Tower's market cap currently stands at NIS 4.8 billion.
last week, Tower reported revenue of $305 million, 29.5% up on the corresponding quarter and $5 million better than the consensus analysts' estimate. The non-GAAP net profit was $39.9 million, 233% up on the corresponding quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on August 11, 2016
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