Clal Industries Ltd. jumped the most in almost five years after billionaire Len Blavatnik’s Access Industries Holdings Inc. offered to buy the shares he doesn’t already own in the holding company.
The shares surged 18 percent, the most since October 2008, to 14.98 shekels at the close in Tel Aviv as the number of shares traded reached 13 times the three-month daily average. The TA-25 benchmark index dropped less than 0.1 percent.
Access Industries offered to buy the outstanding shares at 15.8 shekels and make it a privately held company, Clal Industries said today. The stock closed at 12.74 shekels on June 20, the lowest level since Jan. 1. Access already holds 49.9 percent of the company with stakes in cement maker Nesher Israel Cement Enterprises Ltd. and Clal Biotechnology Industries Ltd.
Blavatnik “obviously thinks Clal is a good company and he can do much more with it if it is privately held,” Noam Pincu, an analyst at Psagot Investment House Ltd., said by phone today. “He must have taken account of the risks surrounding regulatory curbs on Nesher and the potential of Clal Biotechnology.”
Nesher is studying the possible impact of reported regulatory curbs in the cement market, which could affect profit, Clal Industries said today.
The shares have gained 25 percent this year, bringing the company’s market value to 2.36 billion shekels ($648 million), below the 3.79 billion shekels at the end of 2005, according to data compiled by Bloomberg.
If Blavatnik makes Clal Industries closely held, it would be an additional blow for the Tel-Aviv Stock Exchange, which has seen companies like Hot Telecommunication System Ltd. and Delek, the Israeli Fuel Corp. delist from the exchange, Yaniv Pagot, chief strategist for the Ayalon Group Ltd. said by phone today. Mellanox Technologies Ltd. will delist from the bourse Sept. 1.