Makhteshim Agan Industries Ltd. (TASE: MAIN) said today that it continuing to buy its own shares, in line with the policy approved by its board. It is also continuing to consider acquisitions as part of its previously announced business strategy.
In the notice to the TASE, the company explicitly mentioned that it in early talks to possibly acquire a foreign company for a "substantial amount". The name was not disclosed.
Leader Capital Markets analyst Yoav Burgan believes that today's notice was compelled by a legal formality of full disclosure in order to speed up the share buyback. Makhteshim Agan announced its financial report for 2007 that it would buy back up to $100 million worth of shares; it has purchased NIS 116.4 million in shares to date.
Burgan believes that the only new fact in today announcement was that the company was speeding up its program, nothing else. He reiterated his "Buy" recommendation for the share at a target price of NIS 40, an 87% on today's opening price.
Makhteshim Agan rose over 10% by midday today. The company is a unit of IDB Holding Corp. Ltd. (TASE:IDBH) held through Koor Industries Ltd. (TASE:KOR).
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2008
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