Sources inform ''Globes'' that Lev Leviev, the chairman of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), has put up steel-making subsidiary Africa-Israel Industries Ltd. (TASE: AFID) up for sale. Africa-Israel Investments owns 67.5% of Africa-Israel Industries, which has a market cap of NIS 121 million, after an 81% fall in its share since January. Its share fell 1.8% today to NIS 74.40.
Leviev acquired Africa-Israel Industries, then known as Packer Plada from the Packer family in late 2006 for NIS 75 million, reflecting a company value of NIS 320 million, 26% above its market cap at the time.
Africa-Israel Industries controls two companies: Yadpaz Ltd. and Negev Ceramics Ltd. (TASE:NGEV). Africa-Israel Industries has not yet published its financial report for the third quarter, but it has benefited from high steel prices since early 2007, as well as from streamlining measures at Negev Ceramics. The company posted a net profit of NIS 55.6 million on NIS 976.7 million revenue in the first half of 2008.
Last week, Negev Ceramics published record results for the third quarter. Revenue totaled NIS 123.6 million, up 15% on the corresponding quarter of 2007, and net profit rose 136% to NIS 6.4 million.
Africa-Israel Industries has 550 employees in Israel, including 515 at Negev Ceramics. It has an additional 133 steel workers overseas and 200 at Russian steelmaker Apogey Group. Last month, Africa-Israel Industries CEO Nadav Shahar announced his resignation after receiving an offer to take over Haifa Chemicals Ltd.
In recent months, Africa-Israel Investments has been seeking buyers for a number of real estate and other assets in order to reduce its debt. A sale of stakes in five malls by Africa-Israel Properties Ltd. (TASE: AFPR) to Azrieli Group fell through, and the company is in talks to sell the Tel Aviv Government Complex to Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL).
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2008
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