Israel Land Development Company (TASE: ILDC), controlled by Ofer Nimrodi, acquired NIS 2 million worth of shares of subsidiary Israel Land Development Company Energy Ltd. (TASE: IE), which increases its ownership in the company to about 70% (70.3% diluted). Nimrodi acquired the shares during trading last Thursday, just as the company's share price was crashing.

ILDC acquired 1.4 million shares of the subsidiary at a price of NIS 1.42 per share, more or less the same as the share's closing price on the stock exchange following the 24% decline on Thursday, but 22% less than the base price from the same day. ILDC says that the purchasing of shares indicates a vote of confidence in ILDC Energy, and in the great potential of the Sarah and Myra exploration rights.

ILDC deputy director Eli Cohen said, "Our assessment regarding the quality of the Sarah and Myra licenses has increased following this past Thursday. As far as we know, the rights to these licenses represent the third largest potential for discovering gas in Israel's economic waters, after the Leviathan and Tamar licenses, and the highest probability for success presented in Israel before carrying out drilling."

Published by Globes [online], Israel business news - www.globes-online.com - on July 3, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011