Africa-Israel Investments Ltd. (TASE:AFIL) CEO Izzy Cohen has resigned, after four years on the job, after reaching an agreement with the board of directors and chairman Lev Leviev. The company said that the circumstances of his resignation did not require notifying shareholders.
Leviev told the board that he would submit Avraham Novogrocki as CEO at the next board meeting. Novogrocki currently serves as CEO of Africa-Israel Industries Ltd. (TASE: AFID).
There have been unsubstantiated rumors that Izzy Cohen wants to return to the insurance business and head a large insurance company.
Leviev thanked Cohen for his contribution to Africa-Israel's settlement with the capital market, and for leading the company to new horizons during difficult times in global markets. He said that Novogrocki, who has worked at Africa-Israel for 14 years in a range of positions.
Cohen was appointed CEO of Africa-Israel in 2008, after 30 years in the insurance business, including 10 years as CEO of Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL). His tenure at Africa-Israel was stormy, marked by the company's debt settlement with its bondholders in August 2009.
Cohen thought that his job at Africa-Israel would be to improve the company's massive real estate investments in Russia and the US, but just three months after taking office, the collapse of Lehman Brothers in September 2008 brought on the global financial crisis. Cohen was forced to arrange a debt settlement for Africa-Israel - the largest settlement in the history of the Israeli capital market, at NIS 7.5 billion. He succeeded.
During his term, Cohen slashed Africa-Israel's solo debt from NIS 10 billion to NIS 3.5 billion, and rescheduled it over 16 years. At the same time, however, the company's share price fell 85%. That said, the company now has substantially less debt, a strong cash flow and NIS 4.6 billion in shareholders' equity.
Africa-Israel's share price fell 1.6% in early trading today to NIS 11.67, giving a market cap of NIS 1.5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2012
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