Gold Drops to $1,200/oz for First Time Since June in New York
Delek Real Estate Falls to 6-Month Low on Strategy
Delek Real Estate Ltd. dropped to the lowest in more than six months after the Israeli property developer said it plans to sell bonds and offer shares to meet debt obligations.
The shares retreated 5 percent to 1.376 shekels, the lowest level since May 25, giving the company a market value of 415 million shekels ($113 million).
Delek plans to raise 300 million shekels by selling shares to current holders and offer 470 million shekels of bonds in the next two years. The company also seeks to sell its stake in Elad Israel Residences Ltd.
“Investors are concerned by Delek Real Estate’s debt situation and the uncertainty regarding the plan to overcome it,” said Shay Lipman, an analyst at Tel Aviv-based IBI. Delek has debt of 587 million shekels maturing in 2012 and 1.14 billion shekels in 2019, according to data compiled by Bloomberg.
Separately, the company said its third-quarter loss narrowed to 138 million shekels from 449 million shekels.
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