The board of directors of Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev, has approved a plan to buy back up to NIS 700 million worth of its Series 26 bond by the end of 2013, the company notified the TASE today. The company will buy the bonds on the market in amounts and at prices that management will decide.
Africa-Israel added that its board reviewed its sources of financing to repay its debt and for the buyback, including projected cash flows over the next two years. Over the past two years it sold assets for NIS 1.23 billion, accumulating a liquid cash balance.
Africa-Israel said that although the bond buyback will reduce its cash reserves, its board does not think that it will affect the company's ability to finance current and future operations, or its ability to meet its commitments. Taking market conditions and the bond's price into account, the board believes that the buyback is the proper use of part of the company's cash, and that it is a good business opportunity, which should create a surplus notional yield.
The current buyback follows the board's approval in December 2010 of a NIS 1.5 billion buyback of Series 25 and 26 bonds, under which NIS 83 million in bonds were purchased, and the approval in December 2011 of a buyback of NIS 1 billion of Series 26 bonds. In addition, Africa-Israel redeemed early NIS 1.08 billion of Series 25 bonds in January 2011.
Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013