The company plans to acquire 5% of its stock at a cost of NIS 3.5 billion at the current market cap.
Israel Chemicals Ltd. (TASE: ICL) has begun its share buyback plan announced last week, with the purchase of 274,600 shares, 0.02% of its share capital, yesterday for NIS 14.7 million. These shares will now become dormant.
The shares were bought at NIS 54.59 per share, 3.5% above yesterday's opening price of NIS 53.90. The share rose 2% yesterday and a further 3.4% in morning trading today to NIS 56.85. The share is still 30% below its peak of NIS 81.10 of June 18.
Prior to the buyback Israel Chemicals owned just 5,158 of its own shares, worth NIS 290,000, amounting to 0.004% of its share capital. The company plans to acquire 5% of its stock by mid-2009. On the basis of the company's current market cap of NIS 70.89 billion, the buyback program will cost NIS 3.5 billion ($990 million).
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2008
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