Africa-Israel Investments Ltd. (TASE:AFIL) chairman Lev Leviev has sold 7% of Fox-Wizel Ltd. (TASE: FOX), out of his 20% stake in the fashion company and retailer, to foreign financial investors for NIS 86 million. Tuesday's deal came two days after Apax Partners called off talks to invest in Fox. The sale was made at NIS 96 per share, 3% less than yesterday's opening price. Excellence Brokerage brokered the deal.
Fox's share price fell 2.3% yesterday, but rebounded 1.7% by midday today to NIS 98.49, giving a market cap of NIS 1.2 billion.
Leviev first invested in Fox nine years through his private company Memorand Management (1998) Ltd. (through which he controls Africa-Israel), buying a 10% stake in January 2005 and another 10% a year later. He sold a third of the holding after making a more than 500% return on the investment.
"We decided that this was a good block to sell. We'll see what happens later," said Memorand CEO Nadav Grinshpon. "This was a financial opportunity."
In addition to Fox brand retailers, the company owns half of Israeli soaps and fragrance chain Laline, and is the Israeli franchisee of American Eagle Outfitters, and Australia's Billabong International Ltd. (ASX: BBG) (50%) and its shoe subsidiary Marcha Ballerina, and Sacks Fifth Avenue (50%). Fox has 250 points of sale in 11 countries.
Fox's revenue topped NIS 1 billion for the first time in 2012 (including its share of the franchises). Revenue rose 16.8% over the corresponding period of 2012 to NIS 745 million in January-September 2013 and net profit rose 15% to NIS 64.2 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 29, 2014
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