mall 248 88.
(photo credit: Ariel Jerozolimski [file])
Delek Real Estate Ltd. bonds rose after Isaac Tshuva’s property company agreed to sell its stake in Israel’s Ramlod shopping mall and an adjacent gas station as it works to improve its cash position.
Delek’s bonds due 2019 increased 0.6 agorot to 75.8 agorot on the shekel in afternoon trading in Tel Aviv, pushing the yield on the 4.8 percent note to 10.74%. Delek shares climbed as much as 2.6%, the biggest intraday gain in more than a month, to NIS 3.598. They last traded at NIS 3.54.
Delek will sell its 50% holding in the mall and gas station located in the city of Ramla, Israel, for about NIS 59.5 million, it said Wednesday. The transaction would bring the company’s asset sales in the past three months to NIS 800m.
“This is another step in our strategy to realize assets in Israel and abroad,” said Chief Executive Officer Eran Meytal. “This will help improve our liquidity and our financial condition.”
Delek is raising cash holdings as it seeks to assure debt holders it
won’t default after shares slumped 85% in 2008 as property assets, such
as RoadChef Motorways Holdings Ltd. fell in value.
Since the beginning of last year the shares have gained 47% as the
company sells assets and Tshuva pledges to inject cash. Shares of Delek
Group Ltd., the holding company in which Tshuva holds a 64% stake, more
than doubled over the last year after the company and its partners made
Israel’s largest gas discovery offshore Haifa.
Meytal told the Hebrew press late last year the company plans to sell
“billions of shekels in assets,” to help it pay NIS 22b. of debt.