IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, lost NIS 20 million in the third quarter of 2012, which compares with a huge loss of NIS 1.78 billion in the corresponding quarter of 2011. The company published its quarterly financial statements on Friday evening.
The narrowing of the loss is mainly thanks to the rise in the share price of Credit Suisse, the Swiss bank in which IDB, through Koor Industries Ltd. (TASE:KOR), holds 30.3 million shares, representing a 2.36% stake. In the third quarter, Koor posted a profit of NIS 328 million on its holding in Credit Suisse, IDB's share of this profit being NIS 218 million.
IDB's financial statements still have a going concern qualification appended to them. On November 25, subsidiary IDB Development received NIS 509 million from the sale of Clal Industries to Len Blavatnik, and is likely to exercise its option to sell the rest of its holding for NIS 251 million. In its statements, IDB says that "taking into account all the circumstances, the company's position is that despite and after the inclusion of the going concern qualification, the company has the ability to continue to operate in the course of its businesses, and in this context to meet its commitments as they fall due."
IDB also mentions that the KKR investment fund informed it last week that it had decided to terminate negotiations with it on a loan of hundreds of millions of shekels because of the Israel Securities Authority investigation of Nochi Dankner on suspicion of securities fraud. IDB says that there were "very substantial gaps" between it and KKR, and that it intended to pursue an arrangement with other similar entities that had approached it. The loan is required for the purposes of merging Koor with Discount Investment and delisting it through an offer to purchase to Koor shareholders.
Besides the contribution from Credit Suisse, Cellcom contributed NIS 44 million, compared with NIS 65 million in the corresponding quarter, Makhteshim Agan Industries Ltd. contributed NIS 2 million, compared with a loss of NIS 116 million in the corresponding quarter, and supermarket chain Shufersal Ltd. (TASE:SAE) contributed NIS 13 million, compared with a loss of NIS 1 million in the corresponding quarter. Write-downs on real estate projects in Las Vegas of Properties & Building caused IDB a loss of NIS 376 million, compared with a loss of NIS 637 million in the corresponding quarter.
At the end of the third quarter, IDB had a shareholders' equity deficit of NIS 1.6 billion, compared with NIS 1 billion in the corresponding quarter.
Dankner was required by the Israel Securities Authority to deposit his passport, and he has been forbidden to leave the country unless with special permission. He also posted a guarantee of NIS 5 million. Nevertheless, Dankner intends to travel to Argentina this week, in order move forward on a further investment in Ganden, the private company via which he controls IDB, by Eduardo Elsztain, who has already invested $25 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2012
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