Elsztain set to dominate IDB Development

Elsztain, Ben-Moshe picture: Tamar Matzapi
Elsztain, Ben-Moshe picture: Tamar Matzapi

Eduardo Elsztain has bought a further 2.05 million rights units, which will inject NIS 390 million into the company.

Eduardo Elsztain bought a further 2.05 million units in trading in the rights issue by IDB Development on Thursday, the company notified the Tel Aviv Stock Exchange on Friday. IDB Development issued rights in a bid to raise NIS 806 million.

Each of the 11.85 million rights units issued by IDB Development comprises 45 shares at NIS 1.512 per share, and 58 warrants on further shares. Elsztain now holds 5.76 million rights units, which, when exercised, will inject some NIS 390 million into IDB Development.

According to the company's announcement, the other controlling shareholder in IDB Development, Moti Ben-Moshe, has neither bought nor sold rights in the offering.

This Tuesday, February 10, is the last day for exercising the rights. Should Ben-Moshe decide not to exercise the rights he holds, his holding in the company will be diluted, and Elsztain will become the largest shareholder, with the right to appoint most of the board of directors.

Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Elsztain, Ben-Moshe picture: Tamar Matzapi
Elsztain, Ben-Moshe picture: Tamar Matzapi
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