IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) posted a net profit of NIS 410 million (NIS 8.63 per share) for the first quarter of 2012, compared with NIS 255.1 million for the corresponding quarter of 2011. Most of the profit was due to a gain of NIS 491 million from the rise in value of Koor's holding in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ).
Koor owns 30.3 million Credit Suisse shares, 2.48% of the bank, which is due to distribute a dividend of CHF 0.75 per share. Koor's share of the dividend will be NIS 94 million, which it will record for the second quarter.
The value of Koor's stake in Credit Suisse was NIS 2.02 billion at the end of March. The difference between the value of the stake and the value listed in Koor's books is minus 763 million.
Koor added that Makhteshim Agan Industries Ltd., in which Koor owns 40%, repaid a NIS 3.7 billion loan. Makhteshim today reported a net profit of $89 million on $828 million revenue.
Koor's share price fell 2.5% by mid-afternoon today to NIS 49.85, giving a market cap of NIS 2.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2012
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