The slowdown in the local market, reflected in the weakness shown by the local food chains in their most recent financial reports, has not deterred foreign investors from increasing their investments in Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) shares. Fidelity Investments (FMR) and MSD Capital continue to add to their stakes in the company.

The two chains have spent nearly NIS 40 million, equally divided, in acquiring the discount chain's shares, giving each of them over a 9% stake, worth NIS 2.3 billion, following a 10% dip in the share price since the beginning of the year.

At the same time, the weakness shown by the share of Israel's largest food chain, Shufersal Ltd. (TASE:SAE), which has lost 22% of its value within a month, following the streamlining plan unveiled by the chain, has put Rami Levy's value on a par with that of Shufersal. Shufersal, whose current market value is NIS 2.2 billion, has 284 branches covering 563,000 sq.m., compared with 26 branches (plus two more franchises) covering 40,400 sq.m. for Rami Levi.

The value of Rami Levy's 50% stake in his chain is over NIS 1.1 billion. The chain's value has skyrocketed 500% since its 2007 IPO.

The Rami Levy's share price has climbed 51% in the past three years, compared with a 33% slide in the Shufersal share price. IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Discount Investment Corporation (TASE: DISI) owns a controlling share in Shufersal.

Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2014

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