PwC: Makhteshim value 50% above market cap

"It seems MA Industries' share price reflects past events, but does not take into account the recovery that the company expects."

Kesselman & Kesselman PricewaterhouseCooper Israel unit Kesselman Finance has made its third valuation of agrochemicals manufacturer Makhteshim Agan Industries Ltd. (TASE: MAIN) for parent company Discount Investment Corporation (TASE: DISI). Discount Investment published the report in its financial report for the second quarter today.

Kesselman Finance says that the use value of MA Industries has fallen from $2.94 billion at the end of 2009 to $2.38 billion at the end of June (about NIS 9.1 billion). MA Industries' market cap at the end of June was NIS 5.97 billion.

Kesselman Finance says that, during 2009 and the first half of 2010, a number of events, some of them one-time events, adversely affected MA Industries' financial results. These events were not foreseen in the previous valuations that were made for the company. "It seems that MA Industries' share price still reflects the effect of these past events, but does not take into account the recovery that the company expects over the coming years, and its full potential to return in the coming years to representative growth and profitability," says Kesselman Finance.

Discount Investment owns 63.08% of Koor Industries Ltd. (TASE:KOR), which owns 44.08% of MA Industries. MA Industries' share price rose 0.5% by midday to NIS 13.42, giving a market cap of NIS 6.13 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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