Just a year after buying a new corporate jet, and selling the old one to Noam Lanir, Lev Leviev, controlling shareholder in Africa-Israel Investments (TASE: AFIL), is selling the new one too. Africa-Israel subsidiary AFI Development sold the aircraft for $46 million to a private businessperson from overseas. According to sources close to Leviev, he received a good offer, in the light of the slowdown in the private aircraft business.
AFI, which coordinates Africa-Israel's real estate activity in Russia, bought the plane, a Bombardier Global 5000, about a year ago. Enquiries by "Globes" reveal that the plane was technically owned by LL Avia Management SA, registered in Holland, and that it had a book value of $44.5 million. Considering the fall in value from wear and tear and the slowdown in the corporate jet industry, Leviev has made a fairly successful deal, one that will yield a profit of up to $2 million for AFI. Leviev is believed to be about to buy another jet, apparently cheaper.
The Bombardier Global 5000 can carry 15 passengers (not including crew), and has a range of 8,500 kilometers. It was charged out at $5,000 per flight hour and $2,000 per day to Africa-Israel group companies, up to a certain budget ceiling for each company.
AFI Development was floated on the London Stock Exchange in May last year. Its current market cap is $316 million, 93% below the valuation at which it was floated. Africa-Israel owns 71.5% of AFI.
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008