The sale of Fundtech to GTCR for $390 million in November 2011 gave IDB Holding Corp. Ltd. (TASE:IDBH) holding company Clal Industries and Investments Ltd. (TASE: CII) a capital gain of NIS 428 million, boosting the company's net profit attributable to majority shareholders to NIS 585 million in 2011 from NIS 410 million in 2010. The company will distribute a NIS 320 million dividend, bringing its total dividends for 2011 to NIS 950 million
On December 9, IDB, controlled by Nochi Dankner signed a deal to sell 55% of Clal Industries' subsidiary Mashav Initiation and Development Ltd. which owns Nesher Israel Cement Enterprises Ltd. and logistics company Taavura Holdings Ltd. to his partner in IDB, the Livnat family, for NIS 1.32 billion
Clal Industries' net profit rose to NIS 322 million for the fourth quarter from NIS 282 million for the corresponding quarter of 2010. It reported Nesher's fourth quarter cement sales rose 6.2% in quantitative terms, compared with the corresponding quarter, but that its net profit fell 24% to NIS 38 million from NIS 50 million, due to higher energy inputs and financing expenses.
Clal Industries also announced co-CEO Avi Fischer has tendered resigned, which will take effect with the sale of Mashav. Zvi Livnat is the other co-CEO. In a statement, they said, "During 2011, Clal Industries completed the sales of 013 NetVision Ltd., which had been part of the company's portfolio for over a decade."
Fisher added that the pending sale of Mashav would generate a substantial capital gain for Clal Industries. He noted that Clal would still own 20% of Mashav, as well as holdings in range of manufacturers, including Hadera Paper Ltd. (TASE: AIP; Pink Sheets: AIP), fashion company Golf & Co. (TASE:GOLF), jet engine components maker Bet Shemesh Engines Ltd. (TASE: BSEN), and juice company Jafora Ltd. Its subsidiaries also include high-tech companies with potential for creating value, including Clal Biotechnology Industries Ltd. (TASE: CBI), Nova Measuring Instruments Ltd. (Nasdaq:NVMI; TASE:NVMI), Jordan Valley Semiconductors Ltd., Tigo Energy Inc., and 9% of Infinity Private Equity's Infinity Israel-China Fund.
Clal Industries' share price rose 2.8% by mid-afternoon to NIS 15.85, giving a market cap of NIS2.5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2012
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