Kardan Jumps on Bets RRSat Sale to Help Pay Debt: Tel Aviv MoverShoshanna Solomon
Kardan Israel Ltd. headed for the biggest surge in more than three months on bets the Israeli investment group’s sale of half its stake in RRSat Global Communications Network Ltd. will give it funds to pay debt.
Shares of the company that operates in real estate, automotive and technology industries jumped 5.2 percent, the largest advance since Jan. 2, to 1.253 shekels at the close in Tel Aviv. Volume on the stock was 7.9 times the three-month daily average, according to data compiled by Bloomberg. The benchmark TA-25 Index fell 0.3 percent.
The Tel Aviv-based company sold 13 percent of RRSat to Viola Group for $18 million, trimming its holding in the satellite video provider to 11.4 percent, according to a statement to the bourse today. Kardan shares fell 8.7 percent last month as Standard & Poor’s Maalot lowered its credit rating to ilBBB, two steps above junk, citing a “less than satisfactory” funding position. The company has about 364 million shekels ($100 million) of debt maturing through the end of 2014, S&P said.
The stake sale “will help Kardan pay off its debt,” Ramon Amit, an analyst at Leader Capital Markets Ltd., said today by phone. “I assume they will continue to sell holdings to improve their liquidity.”