Internet Gold Gains to Year High on Stake Sale: Tel Aviv Mover

Internet Gold-Golden Lines Ltd.’s shares closed at the highest level this year and yields dropped in Tel Aviv on bets the sale of a stake in B Communications Ltd. will boost liquidity.

The shares of the company controlling Bezeq Israeli Telecommunication Corp., Israel’s biggest land-line provider, advanced 5.8 percent to 13.76 shekels, or $3.78, at the close in Tel Aviv. The U.S.-traded shares closed at $3.73 on June 28. The yield on the 4.45 percent bonds due March 2019 dropped 119 basis points to 10.49 percent, the lowest since May 2012. The benchmark TA-25 Index gained 0.1 percent, capping a 3.8 percent loss this quarter.

Internet Gold said June 27 it sold 3.6 million shares in the unit for 125 million shekels ($34 million), reducing its ownership to 67.99%, according to a filing to the Tel Aviv bourse. Internet Gold is facing debt payments of 174 million shekels in 2013 and 170 million shekels in 2014, according to an investor presentation dated March 2013.

“The move increases the company’s cash coffers and improves liquidity, which will help it make the debt payments going forward,” Gil Dattner, an analyst at Bank Leumi Le-Israel Ltd., said today by phone.

Doron Turgeman, chief executive officer of Internet Gold, said May 13 in a filing to the Tel Aviv bourse the company will continue efforts to improve “our debt and equity positions.” Internet Gold had cash and cash equivalents of 166 million shekels at the end of March 2013 and its total net debt was 865 million shekels, according to a statement to the Israeli bourse.

B Communications gained 0.5 percent after advancing as much as 6.2 percent today in Tel Aviv. The Petach-Tikva, Israel-based Internet Gold owns a stake in Bezeq via B Communications.

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