Amot Loses Most in 4 Years on Share Tender Offer: Tel Aviv Mover

Amot Investments Ltd. dropped the most in almost four years after the real estate developer said it will offer shares to institutional investors at a discount to yesterday’s closing price.

The stock of the Ramat-Gan, Israel-based company slumped 5.2 percent, the most since October 2009, to 10.03 shekels at the close in Tel Aviv, in 80 times the three-month average daily volume. The benchmark TA-25 Index rose 0.3 percent.

Israeli real estate companies, including Gazit-Globe Ltd. and Alony Hetz Properties & Investments Ltd., have this month sold shares as the Tel Aviv Estate 15 Index rose to the highest since September 2008 on June 4. Amot, the country’s sixth-biggest real estate investor by market value, will offer 152 million shekels ($42 million) to institutional investors today at a minimum price of 10.50 shekels per share, which is a 0.8 percent discount on yesterday’s closing price, according to a company statement to the Tel Aviv bourse today.

“This is a good time for the company to raise capital as its share price is close to peak level,” said Noam Pincu, an analyst at Tel Aviv-based Psagot Investment House Ltd. “The sale will provide the capital to expand and buy assets while maintaining sound leverage.”

Pincu has a price estimate of 11.40 shekels on the shares and recommends investors to hold the stock, according to data compiled by Bloomberg.

Controlling shareholders Alony Hetz and Migdal Insurance & Financial Holding Ltd. will make offers at today’s tender at a share price of 11.30 shekels, the company said in today’s statement. Amot on May 29 said it raised 503 million shekels from a sale of its Series Bet bonds rated Aa3 at Moody’s Midroog.