Six months after acquiring control of Ma'ariv Holdings Ltd. (TASE: MARV), Nochi Dankner is considering delisting the company, which owns Hebrew daily "Ma'ariv", from the TASE. The offer published yesterday by Discount Investment Corporation (TASE: DISI) to purchase Ma'ariv's bonds states that the company "was seeking to take Ma'ariv private".
Market sources believe that Dankner will soon try to buy the public's holding in Ma'ariv, as part of his effort to facilitate the streamlining measures that he has been making at the company since taking it over.
Ma'ariv's share price was unchanged today at NIS 3.64, giving a market cap of NIS 420 million, after rising 9% for the year. The public currently owns 10% of the company; the holding is worth NIS 42 million. Discount Investment owns 62%, and Israel Land Development Company (TASE: ILDC), controlled by Ofer Nimrodi, owns 27%.
Market is narrowing the gap
Discount Investment is offering to purchase Ma'ariv's bonds at NIS 0.84 per bond, in accordance with the understandings reached with the bonds' trustee, for a total investment of NIS 37 million. Discount Investment has already invested about NIS 250 million to acquire control of Ma'ariv and in capital injections in less than six months. The offer to purchase was made to all Ma'ariv bondholders, except for Israel Land Development, which owns NIS 25 million worth of bonds at nominal value.
Ma'ariv's business condition is poor, to put it mildly. It lost NIS 33.8 million in the third quarter and NIS 50 million in January-September. The company's accountants attached a going concern warning to the financial report.
Discount Investment's share price rose 0.6% today to NIS 23.74, giving a market cap of NIS 2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2011
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