Discount Investment Corporation (TASE: DISI), a unit of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, will make a NIS 188 million write-down on its investment in Shufersal Ltd. (TASE:SAE). Discount Investment owns 46% of Shufersal, Israel's largest supermarket chain.
In a notice to the TASE, Discount Investment said, "It commissioned an independent valuation for Shufersal's operations in view of the continuing negative differential between Shufersal's market cap and its value in Discount Investment's books. On the basis of the draft report, the value of Shufersal's operations is NIS 5.28-5.79 billion. On the basis of the draft report, Discount Investment expects to make a write-down in the second quarter of 2012 of NIS 188 million for the decline in value, which is based on the upper end of the range."
Earlier this month, Shufersal reported a 54% drop in its second quarter net profit, compared with the corresponding quarter of 2011, to NIS 36 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2012
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