IDB Holding Corp. rose the most in almost two weeks and its bonds advanced after the company said its biggest shareholder Ganden Holdings Ltd. signed an agreement with an investor to inject as much as $100 million.
The shares gained 3.7 percent, the most since Sept. 12, to 13.77 shekels at the close in Tel Aviv. The yield on IDB’s 5.1 percent notes maturing in December 2020 dropped 274 basis points, or 2.74 percentage points, the most since Sept. 12, to 69.22 percent. Shares of Discount Investment Corp., which is 74 percent owned by IDB, jumped 14 percent to 8 shekels.
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. IDB is seeking funds after second-quarter results included a so-called going-concern warning. Ganden plans 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 reach an agreement with bondholders over payments.
The benchmark TA-25 share index rose 0.9 percent. Cellcom Israel Ltd., 47 percent owned by Discount, climbed 4.3 percent to 33.9 shekels, the highest since May 16.