Azorim Gains as Unit in Accord to Sell Asset: Tel Aviv Mover
Azorim-Investment Development & Construction Co. (AZRM) shares rose the most more than in two months and its bond yields dropped as the construction company said a unit will sell the rights to an Israeli mall and plot.
The shares in the Tel Aviv-based developer rose 5.2 percent, the highest since Jan. 15, to 3.154 shekels at the close in Tel Aviv. The yield on the company’s 350 million shekels of 5.5 percent notes due December 2017 fell 10 basis points to 3.89 percent. The TA-25 index dropped 0.5 percent, bringing its gain to 4.4 percent this quarter.
Azorim said a unit entered an accord with Harel Insurance Investments & Financial Services Ltd. (HARL) and Dikla Insurance Co. to sell 50 percent of its rights in Netanya, Israel’s Ir Yamim center for 390 million shekels ($107 million), according to a filing with the Tel-Aviv Stock Exchange today. The filing said the transaction is subject to covenants.
“The announcement is not a surprise as it was known they were looking to sell the asset,” Adar Etzioni, head of research at Migdal Capital Markets Ltd. in Tel Aviv said today by phone. “The sale is in line with the company’s policy of improving its equity to lower its debt commitments.”
The yield on the company’s bonds has fallen 91 basis points since Moody’s Midroog raised Azorim’s credit rating on Feb. 3 by one level to A3, citing its steps to boost equity and funding to meet 300 million shekels of debt commitments this year.
Harel shares dropped 2 percent to 188.1 shekels.
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