IDB Holding Corp. (IDBH)’s rose the most in almost a month in Tel Aviv trading after its parent Ganden Holdings Ltd. won an agreement with an investor for an injection of as much as $100 million. IDB’s bonds also advanced.
The shares gained as much as 5.8 percent, the most since Aug. 27. Eduardo Elsztain will buy 10 percent of Ganden for $25 million and get an option to invest an additional $75 million in the company, IDB said yesterday in an e-mailed statement.
The yield on IDB’s 5.1 percent notes maturing December 2020 dropped 219 basis points, or 2.19 percentage points, the most since Sept. 12 to 69.77 percent as of 11:21 a.m. in Tel Aviv, according to prices compiled by Bloomberg. The shares advanced 0.7 percent to 13.37 shekels. Discount Investment Corp. (DISI), 74 percent owned by IDB, jumped 4.3 percent to 7.341 shekels.
IDB is seeking funds after second-quarter results included a so-called going-concern warning. Ganden planned to inject part of Elsztain’s investment into IDB, the unit said on Sept. 19.
IDB was ordered by a Tel Aviv court on Sept. 5 to place 35 million shekels ($9 million) owed to Series Bet bondholders in trust. It was given 21 days to agree payments with holders.
To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org