Monday, January 2, 2012

Bethel Finance: Africa-Israel to buy back NIS 1b in bonds

www.bethelfinance.com
Bethel Finance news:
Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev, has begun the new year with a buyback of company bonds estimated at NIS 1 billion.

In a notice to the TASE today, Africa-Israel reported that its board has approved the continuation of the buyback purchasing program it began in late 2010. In 2011, the company bought NIS 1.16 billion worth of bonds. About NIS 400,000 of the original NIS 1.5 billion bond buyback program was unused.

Africa-Israel said, "Although the program will reduce the liquidity of cash balances held by the company, Africa-Israel believes that this will not harm the company's ability to carry out current operations or the ability to meet its obligations."

The company added, "Taking the long-term market conditions and bond prices into account, a bond buyback is the proper use of the company's cash… It is a financially sound move to make."

Africa-Israel's share price rose 3% in morning trading to NIS 11.87, giving a market cap of NIS 1.4 billion.

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