Discount Investment Corporation (TASE: DISI), a holding company of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), notified the TASE today that, as part of its financial report for 2011, it was considering a write-down on its holding in Shufersal Ltd. (TASE:SAE), due to the difference between Shufersal's market cap and the value of the holding in the company's books.
Discount Investment, which owns 46% of Shufersal, said that there was no certainty that a write-down would be made, and if it was, by how much.
Discount Investment cites a report by Midroog Ltd., which states, "Following the announcement by Discount Investment and Koor Industries Ltd. (TASE:KOR) about measures taken for a merger of Koor with Discount Investment, Midroog is monitoring the proposed structure of the deal and its terms, and it will review the ramifications for the bonds issued by Discount Investment and Koor."
Discount Investment said that Midroog gives its bonds an A1 rating with a "Negative" outlook, and it gives Koor's bonds an A2 rating with a "Stable" outlook.
Discount Investment's share price was flat in morning trading at NIS 23.05, giving a market cap of NIS 1.9 billion, and Shufersal's share price rose 0.5% to NIS 14.27, giving a market cap of NIS 3.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 20, 2012
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