Leumi Partners, the investment banking arm of Bank Leumi (TASE: LUMI), has completed the sale of its 9.6% holding in the Cross Israel Highway (Route 6)
Leumi Partners received NIS 350 million, and will receive a further NIS 4.5 million if certain conditions are fulfilled. The deal values Route 6 at NIS 3.7 billion.
The profit on the deal, before tax, will be some NIS 100 million, and will be posted in the financial statements for the fourth quarter of 2015.
Leumi Partners invested NIS 128 million in Route 6 in December 2010, when Israel Infrastructure Fund (IIF) bought the stakes of Africa-Israel Investments Ltd. (TASE:AFIL) and Canadian Highways Investment Corporation (CHIC), and it invested a further NIS 144 million in July 2013 when IIF bought the stake of Shikun & Binui Holdings Ltd. (TASE: SKBN) in the highway. Over the years, the investment has yielded cash flow of NIS 62 million, and, together with the one-time gain on the sale, the total profit on the investment is NIS 162 million, before tax.
Published by Globes [online], Israel business news - www.globes-online.com - on January 3, 2016
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