www.bethelfinance.com
Israel Discount Bank (TASE: DSCT) reported double-digit profit growth on lower revenue for 2011.
Net profit attributable to majority shareholders rose 21% to NIS 852 million (NIS 0.81 per share) in 2011 from NIS 704 million in 2010. The bank's return on equity rose to 8.2% in 2011 from 7% in 2010. The core capital adequacy ratio rose to 8.1% at the end of 2011 from 7.7% a year earlier.
Income from financing operations before provision for credit losses fell 0.9% to NIS 4.78 billion in 2011 from NIS 4.83 billion in 2010, and the provision for credit loss fell 5.2% to NIS 778 million from NIS 821 million.
Fourth quarter net profit rose 69.5% to NIS 222 million from NIS 131 million for the corresponding quarter of 2010, and its return on equity rose to 8.7% from 5.1%. Income from financing operations before provision for credit losses fell 11.8% to NIS 1.14 billion for the fourth quarter from NIS 1.29 billion for the corresponding quarter, and the expense for credit loss fell 8% to NIS 252 million from NIS 274 million.
Discount Bank's deposits from the public rose 11% to NIS 153.4 billion at the end of 2011 from NIS 138 billion a year earlier, but credit to the public fell 2% to NIS 116.4 billion from NIS 118.7 billion.
Discount Bank CEO Reuven Spiegel's salary cost was NIS 7.75 million in 2010, including a salary of NIS 2.23 million, and a bonus of NIS 1.88 million.
Spiegel and chairman Yossi Bachar said in a statement, "2011 was a challenging year for companies in the Israeli economy. Discount Bank's results and achievements for 2011 particularly stand out given the economic climate and market uncertainty."
Discount Bank's share price fell 2.7% in morning trading to NIS 5.20, giving a market cap of NIS 5.6 billion.
Wednesday, March 28, 2012
Bethel Finance:Shekel weakens
www.bethelfinance.com
The shekel is weakening against the dollar and euro in morning inter-bank trading. The shekel-dollar exchange rate is up 0.26%, compared with yesterday's representative rate, to NIS 3.725/$, and the shekel-euro exchange rate is up 0.27% to NIS 4.974/€.
In international markets, the dollar is traded at $1.333/€ against the euro and at ¥82.72/$ against the yen.
In macroeconomics, analysts expect durable goods orders for February, which will be published today, to rise by 3% over January.
The shekel is weakening against the dollar and euro in morning inter-bank trading. The shekel-dollar exchange rate is up 0.26%, compared with yesterday's representative rate, to NIS 3.725/$, and the shekel-euro exchange rate is up 0.27% to NIS 4.974/€.
In international markets, the dollar is traded at $1.333/€ against the euro and at ¥82.72/$ against the yen.
In macroeconomics, analysts expect durable goods orders for February, which will be published today, to rise by 3% over January.
Bethel Finance: Shikun U'Binui results indicate slowdown in home sales
www.bethelfinance.com
The cooling of Israel's housing market caused a 27% drop in homes sales in 2011 by Shikun u'Binui Holdings Ltd. (TASE: SKBN), controlled by Shari Arison through Arison Holdings Ltd. However, the performance of the company's other operations resulted in higher revenue, although profits fell sharply. The company expects that the government's efforts to cool the housing market will continue to adversely affects its results in 2012, but CEO Ofer Kotler told "Globes" that the company's other operations will offset the weakness in the housing market. He therefore does not expect that the company's revenue and profit will be harmed in 2012.
Shikun u'Binui, Israel's largest residential construction company, said in its financial report that the slowing in apartment prices was due to the increase in housing starts, interest rate hikes by the Bank of Israel and its macro-prudential measures, as well as tax measures by the Ministry of Finance. "The impact of these measures, like the land marketing efforts by the Ministry of Housing and Construction, may have an effect during this year," it says.
Shikun u'Binui built 830 apartments in 2011, 27% fewer than the 1,142 apartments built in 2010. It believes that the drop in apartment sales is temporary. "There has been no change in the scale of the company's activities in the sector, nor any material change in the number of housing units under construction, because of the assessment that there is still a housing shortage and the slowdown in demand is only temporary," it says. Kotler predicts that home prices and sales will again rise in 2013 because of the decline in housing starts.
Shikun u'Binui's revenue rose 10% to NIS 5.34 billion in 2011 from NIS 4.87 billion in 2010. Fourth quarter revenue rose 13% to NIS 1.41 billion from NIS 1.25 billion for the corresponding quarter of 2010. Residential construction in Israel accounts for only 20% of the company's revenue. Its other operations include infrastructures in Israel and internationally through Shikun u'Binui Solel Boneh Building and Infrastructure Ltd. and Solel Boneh International Ltd., desalination and water, and renewable energy. These operations more than offset the dip in the company's domestic residential construction business.
Net profit fell 19% to NIS 444 million in 2011 from NIS 545 million in 2010. Fourth quarter net profit fell 76% to NIS 76 million from NIS 295 million for the corresponding quarter.
The company recognized revenue from apartments sold before 2011, which improved its overall numbers for the year. It reported NIS 811.4 million revenue from 649 apartments delivered, compared with NIS 587.1 million in 2011. Gross profit from domestic home sales rose to NIS 292.8 million in 2011 from NIS 191.8 million in 2010.
Despite the drop in profits, uncertainty in the real estate market, and worries about regulations by the government and Bank of Israel, Kotler's salary cost was NIS 7.7 million in 2011, including a NIS 4.4 million bonus. The salary cost of chairwoman Ravit Barnit was NIS 6.7 million, and the salary cost of Shikun u'Binui Real Estate CEO Tamir Dagan was NIS 5 million.
"In general, 2012 will be at least as good as 2011 by every measure, including revenue, net profit, and operating profit," said Kotler. "There is some drop in apartment sales in Israel, but we increased the number of sites, and in recent months we began work on new sites in Yokne'am, Hadera, and Ashkelon. We'll build hundreds of apartments there."
"Globes": How is it that press releases by contractors in recent months talk about demand and sales, but we see a plunge in sales in financial reports?
Kotler: "There is a combination of demand and supply, but all in all, this is a sophisticated market that balances out over time. Even if there is some drop in apartment prices in 2012, this will right itself in 2013 because there won't be housing starts."
The cooling of Israel's housing market caused a 27% drop in homes sales in 2011 by Shikun u'Binui Holdings Ltd. (TASE: SKBN), controlled by Shari Arison through Arison Holdings Ltd. However, the performance of the company's other operations resulted in higher revenue, although profits fell sharply. The company expects that the government's efforts to cool the housing market will continue to adversely affects its results in 2012, but CEO Ofer Kotler told "Globes" that the company's other operations will offset the weakness in the housing market. He therefore does not expect that the company's revenue and profit will be harmed in 2012.
Shikun u'Binui, Israel's largest residential construction company, said in its financial report that the slowing in apartment prices was due to the increase in housing starts, interest rate hikes by the Bank of Israel and its macro-prudential measures, as well as tax measures by the Ministry of Finance. "The impact of these measures, like the land marketing efforts by the Ministry of Housing and Construction, may have an effect during this year," it says.
Shikun u'Binui built 830 apartments in 2011, 27% fewer than the 1,142 apartments built in 2010. It believes that the drop in apartment sales is temporary. "There has been no change in the scale of the company's activities in the sector, nor any material change in the number of housing units under construction, because of the assessment that there is still a housing shortage and the slowdown in demand is only temporary," it says. Kotler predicts that home prices and sales will again rise in 2013 because of the decline in housing starts.
Shikun u'Binui's revenue rose 10% to NIS 5.34 billion in 2011 from NIS 4.87 billion in 2010. Fourth quarter revenue rose 13% to NIS 1.41 billion from NIS 1.25 billion for the corresponding quarter of 2010. Residential construction in Israel accounts for only 20% of the company's revenue. Its other operations include infrastructures in Israel and internationally through Shikun u'Binui Solel Boneh Building and Infrastructure Ltd. and Solel Boneh International Ltd., desalination and water, and renewable energy. These operations more than offset the dip in the company's domestic residential construction business.
Net profit fell 19% to NIS 444 million in 2011 from NIS 545 million in 2010. Fourth quarter net profit fell 76% to NIS 76 million from NIS 295 million for the corresponding quarter.
The company recognized revenue from apartments sold before 2011, which improved its overall numbers for the year. It reported NIS 811.4 million revenue from 649 apartments delivered, compared with NIS 587.1 million in 2011. Gross profit from domestic home sales rose to NIS 292.8 million in 2011 from NIS 191.8 million in 2010.
Despite the drop in profits, uncertainty in the real estate market, and worries about regulations by the government and Bank of Israel, Kotler's salary cost was NIS 7.7 million in 2011, including a NIS 4.4 million bonus. The salary cost of chairwoman Ravit Barnit was NIS 6.7 million, and the salary cost of Shikun u'Binui Real Estate CEO Tamir Dagan was NIS 5 million.
"In general, 2012 will be at least as good as 2011 by every measure, including revenue, net profit, and operating profit," said Kotler. "There is some drop in apartment sales in Israel, but we increased the number of sites, and in recent months we began work on new sites in Yokne'am, Hadera, and Ashkelon. We'll build hundreds of apartments there."
"Globes": How is it that press releases by contractors in recent months talk about demand and sales, but we see a plunge in sales in financial reports?
Kotler: "There is a combination of demand and supply, but all in all, this is a sophisticated market that balances out over time. Even if there is some drop in apartment prices in 2012, this will right itself in 2013 because there won't be housing starts."
Wednesday, March 21, 2012
Bethel Finance: Singapore's New Credit Rating Agency Regulations Will Bode Well for Firms
Bethel Finance is confident that Singapore's new regulatory framework for Credit Rating Agencies (CRAs) as well as ESMA's recent approval of it will strengthen investor confidence and catalyze business activity.
Bethel Finance is optimistic that Singapore's new regulatory framework for CRAs as well as the European Securities and Markets Authority's (ESMA) recent approval of it will bode well for Singapore firms and bolster investor confidence in Singapore.
Recently, the Monetary Authority of Singapore (MAS) has implemented a new regulatory framework for Credit Rating Agencies (CRA) under the Securities and Futures Act (SFA). Under this Act, CRAs are required to obtain the Capital Markets Services (CMS) license and comply with a corresponding code of conduct.
Additionally, its representatives will be required to hold at least a Bachelor's degree in a relevant discipline and be registered with MAS before performing the role and providing credit rating services.
Analysis by Bethel Finance shows that these measures protect the interests of investors by ensuring that Singapore's financial markets are well-regulated and meet high safety standards. ESMA's stamp of approval serves as the icing on the cake as it affirms that Singapore's regulatory framework for CRAs is on-point and aligned with EU's CRA regulations.
"Foreign investors and venture capitalists are more inclined to spend in jurisdictions which are safe and promise high returns on investments. On the back of ESMA's endorsement, we anticipate that Singapore's new CRA regulations will in turn pave the way for more foreign direct investments to flow into Singapore," affirmed Mr.David Marmet, Head of Bethel Finance's Operations.
Further analysis by Bethel Finance shows that a higher inflow of foreign direct investments (FDIs) will in turn generate a more optimistic business sentiment and attract entrepreneurs and firms to register a Singapore company.
"The immediacies of running a business day to day means that entrepreneurs and key decision makers take cue from and flock to jurisdictions that can continually attract high inflows of investments. Singapore's track record of doing so has been assuring to firms and entrepreneurs require a stable business environment that can weather economic headwinds and offer credit at lower interest rates."
"The new regulations will ensure that Singapore's financial market remains buoyant, investor confidence intact and business sentiment positive. We therefore anticipate the new regulations on the back of ESMA's endorsement to serve as a call to action and encourage entrepreneurs to form a Singapore company," added Mr. Bakhda.
ABOUT Bethel Finance:
Bethel Finance is a new boutique investment firm dedicated to serving the financial needs of wealthy Israeli families in Israel and abroad. The founders of the company have managed similar activities in Europe and North America for years.
Bethel Finance Ltd
Engel House 88 Ygal Allon St
Tel Aviv 67891 Israël
Phone: + 972 (0)3-6437999
Fax: + 972 (0)3-6437889
Skype: bethelfinance
Email:info@bethelfinance.com
www.bethelfinance.com
Bethel Finance is optimistic that Singapore's new regulatory framework for CRAs as well as the European Securities and Markets Authority's (ESMA) recent approval of it will bode well for Singapore firms and bolster investor confidence in Singapore.
Recently, the Monetary Authority of Singapore (MAS) has implemented a new regulatory framework for Credit Rating Agencies (CRA) under the Securities and Futures Act (SFA). Under this Act, CRAs are required to obtain the Capital Markets Services (CMS) license and comply with a corresponding code of conduct.
Additionally, its representatives will be required to hold at least a Bachelor's degree in a relevant discipline and be registered with MAS before performing the role and providing credit rating services.
Analysis by Bethel Finance shows that these measures protect the interests of investors by ensuring that Singapore's financial markets are well-regulated and meet high safety standards. ESMA's stamp of approval serves as the icing on the cake as it affirms that Singapore's regulatory framework for CRAs is on-point and aligned with EU's CRA regulations.
"Foreign investors and venture capitalists are more inclined to spend in jurisdictions which are safe and promise high returns on investments. On the back of ESMA's endorsement, we anticipate that Singapore's new CRA regulations will in turn pave the way for more foreign direct investments to flow into Singapore," affirmed Mr.David Marmet, Head of Bethel Finance's Operations.
Further analysis by Bethel Finance shows that a higher inflow of foreign direct investments (FDIs) will in turn generate a more optimistic business sentiment and attract entrepreneurs and firms to register a Singapore company.
"The immediacies of running a business day to day means that entrepreneurs and key decision makers take cue from and flock to jurisdictions that can continually attract high inflows of investments. Singapore's track record of doing so has been assuring to firms and entrepreneurs require a stable business environment that can weather economic headwinds and offer credit at lower interest rates."
"The new regulations will ensure that Singapore's financial market remains buoyant, investor confidence intact and business sentiment positive. We therefore anticipate the new regulations on the back of ESMA's endorsement to serve as a call to action and encourage entrepreneurs to form a Singapore company," added Mr. Bakhda.
ABOUT Bethel Finance:
Bethel Finance is a new boutique investment firm dedicated to serving the financial needs of wealthy Israeli families in Israel and abroad. The founders of the company have managed similar activities in Europe and North America for years.
Bethel Finance Ltd
Engel House 88 Ygal Allon St
Tel Aviv 67891 Israël
Phone: + 972 (0)3-6437999
Fax: + 972 (0)3-6437889
Skype: bethelfinance
Email:info@bethelfinance.com
www.bethelfinance.com
Bethel Finance: Singapore's Number Nine Ranking is Still Fine
www.bethelfinance.com
Although Singapore has been listed as the ninth best country for business in Bloomberg's latest survey, Singapore company registration specialists Bethel Finance Ltd is confident that the Republic trumps the Special Administrative Region on some factors.
www.bethelfinance.com
In spite of Singapore's lower ranking vis-a-vis Hong Kong in the latest Bloomberg Best Countries for Business survey, Singapore company registration specialists Bethel Finance is confident that the Republic is positioned to attract more businesses that value lower rental rates, cleaner environment and tax rebates for making their way up the productivity value chain.
Bloomberg's Best Countries for Business survey evaluated 160 markets along six categories namely the 1) costs of setting up business, 2) hiring and moving goods, 3) the degree of economic integration, 4) costs of labor and material, 5) less tangible costs and 6) the readiness of the local consumer base.
Hong Kong, which came first in the list, scored higher than Singapore on all fronts. However, company registration specialists Mr. David Marmet ( Bethel Finance Ltd )has recognized three crucial factors that continue to compel entrepreneurs and firms to form a Singapore company, namely 1) lower office rental rates, 2) cleaner environment and 3) the tax rebates offered through the Productivity and Innovation Credit (PIC) scheme.
LOWER OFFICE RENTAL RATES IN SINGAPORE
Prime office rental rates has consistently been lower in Singapore than in Hong Kong. Knight Frank's recent study has demonstrated that Central Hong Kong has superceded London's West End for having the highest prime office rental rates worldwide in 2011. Colliers International's H2 2011 Global Office Demand Growth survey has also affirmed this trend.
The survey showed that Hong Kong offers the most expensive net rental rate for Class A office spaces not only in Asia, but globally. As of December 2011, the rate for Class A office spaces was US$178.34 per square feet. In comparison, office space of the same quality in Singapore cost almost a third of that during the same period. At US$65.81 per square feet, prime office space in Singapore offers both startups and MNCs immense cost savings.
CLEANER ENVIRONMENT
A beautiful office space is nothing if the tenant cannot enjoy the view. Hong Kong is notorious for its persistently poor air quality. According to a recent report by Civic Exchange, the Region's air pollution levels is responsible for over 528, 000 hospital bed days and over 49 million medical visits since 2005. The city is only beginning to chart a new roadmap to improve its air quality in the face of rising criticism by academics, businesses and international bodies like WHO.
Singapore, on the other hand offers high air quality compared to Hong Kong and other cities in the region. Sources of air pollution has long been well-regulated in Singapore and the government has enforced minimum emission standards under the Environmental Protection and Management (Air Impurities) Regulations in 2000 to ensure that air remains clean and safe in Singapore.
Furthermore, the Singapore government's recent announcement of a S$75 million injection to support agencies including the Singapore Green Building Council and the Waste Management and Recycling Association over the next four years is a testament to Singapore's commitment to maintaining high environmental standards for its residents.
TAX REBATES THROUGH THE PIC SCHEME
In gist, the Productivity and Innovation Credit scheme allows firms enjoy tax rebates or cash payouts when they move up the productivity and innovation chain.The updated scheme grants every Singapore firm a 400% tax deduction or a 60% cash payout option when investments are made in six productivity-enhancing and innovation activities per annum. "This in turn means that Singapore firms that plan their productivity and innovation strategies ahead of time could potentially reap up to S$9.6 million in tax savings on their annual taxable income" said Mr. David Marmet from Bethel Finance Ltd.
Further analysis by Bethel Finance shows that the World Bank has ranked Singapore as the Easiest Place to do Business. As discussed in a recent analysis of EIU's ranking, Singapore is the world's third and Asia's most competitive city due to its ability to attract businesses, capital, talent and tourists.
Commenting on the Mr. David Marmet, Head of Operations, Bethel Finance, said, "In the near term, Hong Kong is an attractive location as it offers a slightly lower corporate tax rate and robust free market policies. However, in that regard, Singapore can closely match those terms and more. The three factors discussed demonstrate that Singapore offers a better environment to live, open a company and relocate a family. We anticipate that more discerning entrepreneurs and professionals will instead start a Singapore company with the long-term view of relocating their loved ones and growing the business."
ABOUT Bethel Finance:
Bethel Finance is a new boutique investment firm dedicated to serving the financial needs of wealthy Israeli families in Israel and abroad. The founders of the company have managed similar activities in Europe and North America for years.
Bethel Finance Ltd
Engel House 88 Ygal Allon St
Tel Aviv 67891 Israël
Phone: + 972 (0)3-6437999
Fax: + 972 (0)3-6437889
Skype: bethelfinance
Email:info@bethelfinance.com
www.bethelfinance.com
Although Singapore has been listed as the ninth best country for business in Bloomberg's latest survey, Singapore company registration specialists Bethel Finance Ltd is confident that the Republic trumps the Special Administrative Region on some factors.
www.bethelfinance.com
In spite of Singapore's lower ranking vis-a-vis Hong Kong in the latest Bloomberg Best Countries for Business survey, Singapore company registration specialists Bethel Finance is confident that the Republic is positioned to attract more businesses that value lower rental rates, cleaner environment and tax rebates for making their way up the productivity value chain.
Bloomberg's Best Countries for Business survey evaluated 160 markets along six categories namely the 1) costs of setting up business, 2) hiring and moving goods, 3) the degree of economic integration, 4) costs of labor and material, 5) less tangible costs and 6) the readiness of the local consumer base.
Hong Kong, which came first in the list, scored higher than Singapore on all fronts. However, company registration specialists Mr. David Marmet ( Bethel Finance Ltd )has recognized three crucial factors that continue to compel entrepreneurs and firms to form a Singapore company, namely 1) lower office rental rates, 2) cleaner environment and 3) the tax rebates offered through the Productivity and Innovation Credit (PIC) scheme.
LOWER OFFICE RENTAL RATES IN SINGAPORE
Prime office rental rates has consistently been lower in Singapore than in Hong Kong. Knight Frank's recent study has demonstrated that Central Hong Kong has superceded London's West End for having the highest prime office rental rates worldwide in 2011. Colliers International's H2 2011 Global Office Demand Growth survey has also affirmed this trend.
The survey showed that Hong Kong offers the most expensive net rental rate for Class A office spaces not only in Asia, but globally. As of December 2011, the rate for Class A office spaces was US$178.34 per square feet. In comparison, office space of the same quality in Singapore cost almost a third of that during the same period. At US$65.81 per square feet, prime office space in Singapore offers both startups and MNCs immense cost savings.
CLEANER ENVIRONMENT
A beautiful office space is nothing if the tenant cannot enjoy the view. Hong Kong is notorious for its persistently poor air quality. According to a recent report by Civic Exchange, the Region's air pollution levels is responsible for over 528, 000 hospital bed days and over 49 million medical visits since 2005. The city is only beginning to chart a new roadmap to improve its air quality in the face of rising criticism by academics, businesses and international bodies like WHO.
Singapore, on the other hand offers high air quality compared to Hong Kong and other cities in the region. Sources of air pollution has long been well-regulated in Singapore and the government has enforced minimum emission standards under the Environmental Protection and Management (Air Impurities) Regulations in 2000 to ensure that air remains clean and safe in Singapore.
Furthermore, the Singapore government's recent announcement of a S$75 million injection to support agencies including the Singapore Green Building Council and the Waste Management and Recycling Association over the next four years is a testament to Singapore's commitment to maintaining high environmental standards for its residents.
TAX REBATES THROUGH THE PIC SCHEME
In gist, the Productivity and Innovation Credit scheme allows firms enjoy tax rebates or cash payouts when they move up the productivity and innovation chain.The updated scheme grants every Singapore firm a 400% tax deduction or a 60% cash payout option when investments are made in six productivity-enhancing and innovation activities per annum. "This in turn means that Singapore firms that plan their productivity and innovation strategies ahead of time could potentially reap up to S$9.6 million in tax savings on their annual taxable income" said Mr. David Marmet from Bethel Finance Ltd.
Further analysis by Bethel Finance shows that the World Bank has ranked Singapore as the Easiest Place to do Business. As discussed in a recent analysis of EIU's ranking, Singapore is the world's third and Asia's most competitive city due to its ability to attract businesses, capital, talent and tourists.
Commenting on the Mr. David Marmet, Head of Operations, Bethel Finance, said, "In the near term, Hong Kong is an attractive location as it offers a slightly lower corporate tax rate and robust free market policies. However, in that regard, Singapore can closely match those terms and more. The three factors discussed demonstrate that Singapore offers a better environment to live, open a company and relocate a family. We anticipate that more discerning entrepreneurs and professionals will instead start a Singapore company with the long-term view of relocating their loved ones and growing the business."
ABOUT Bethel Finance:
Bethel Finance is a new boutique investment firm dedicated to serving the financial needs of wealthy Israeli families in Israel and abroad. The founders of the company have managed similar activities in Europe and North America for years.
Bethel Finance Ltd
Engel House 88 Ygal Allon St
Tel Aviv 67891 Israël
Phone: + 972 (0)3-6437999
Fax: + 972 (0)3-6437889
Skype: bethelfinance
Email:info@bethelfinance.com
www.bethelfinance.com
Bethel Finance: Concentration c'tee members disagree on holding companies ban
www.bethelfinance.com
The Committee on Concentration in the Economy, headed by former Ministry of Finance director general Haim Shani, submitted its final report to Prime Minister Benjamin Netanyahu, Minister of Finance Yuval Steinitz, and Governor of the Bank of Israel Prof. Stanley Fischer today, one month after the disclosure of its recommendations in the media. There is no change in the recommendations, but the final report reveals, for the first time, the minority opinion about the critical matter of pyramids by two of its members: Supervisor of Capital Markets, Insurance and Savings Prof. Oded Sarig and National Economics Committee chairman Eugene Kandel.
The minority opinion of Sarig and Kandel, experts on these issues, matches the views of Israel Securities Authority chairman Prof. Shmuel Hauser and Budget Director Gal Hershkowitz.
Sairg and Kandel say that they agree with the recommendations, which offer the right balance and proportionality between ensuring an efficient and competitive market, and minimizing the damage to private sector activity. They believe that the ban on pyramid holding structures with more than two layers should distinguish between public traded companies and bond companies (private companies that only have bonds traded on the TASE).
In other words, a bond holding company that controls two publicly traded ubsidiaries should not be considered as a layer in a pyramid structure. "Regrettably, bond companies should be allowed to hold two layers of public companies for a limited period of time (up to five years), similar to the committee's recommendation to permit the floating of subsidiaries to the public as a third layer in a pyramid for a designated period of time," Kandel and Sarig write. The reason is simple: in the case of a bond company, a "gap company" would not be created, because the principle of strong control through limited capital will not exist.
Sarig and Kandel say that the recommendation adopted by the Concentration Committee does not offer any reason for distinguishing between the different financing (tradable and non-tradable capital), and creates a preference for a certain method of financing, without offering a reason. They warn against the risk that the committee's recommendations on this point are liable to make it difficult to buy or sell companies that the recommendations will compel the sale of (to separate financial and non-financial holdings and reduce pyramid structures)
"The recommendations without our change will render the building of public holding companies less worthwhile in the future," they write.
The Committee on Concentration in the Economy, headed by former Ministry of Finance director general Haim Shani, submitted its final report to Prime Minister Benjamin Netanyahu, Minister of Finance Yuval Steinitz, and Governor of the Bank of Israel Prof. Stanley Fischer today, one month after the disclosure of its recommendations in the media. There is no change in the recommendations, but the final report reveals, for the first time, the minority opinion about the critical matter of pyramids by two of its members: Supervisor of Capital Markets, Insurance and Savings Prof. Oded Sarig and National Economics Committee chairman Eugene Kandel.
The minority opinion of Sarig and Kandel, experts on these issues, matches the views of Israel Securities Authority chairman Prof. Shmuel Hauser and Budget Director Gal Hershkowitz.
Sairg and Kandel say that they agree with the recommendations, which offer the right balance and proportionality between ensuring an efficient and competitive market, and minimizing the damage to private sector activity. They believe that the ban on pyramid holding structures with more than two layers should distinguish between public traded companies and bond companies (private companies that only have bonds traded on the TASE).
In other words, a bond holding company that controls two publicly traded ubsidiaries should not be considered as a layer in a pyramid structure. "Regrettably, bond companies should be allowed to hold two layers of public companies for a limited period of time (up to five years), similar to the committee's recommendation to permit the floating of subsidiaries to the public as a third layer in a pyramid for a designated period of time," Kandel and Sarig write. The reason is simple: in the case of a bond company, a "gap company" would not be created, because the principle of strong control through limited capital will not exist.
Sarig and Kandel say that the recommendation adopted by the Concentration Committee does not offer any reason for distinguishing between the different financing (tradable and non-tradable capital), and creates a preference for a certain method of financing, without offering a reason. They warn against the risk that the committee's recommendations on this point are liable to make it difficult to buy or sell companies that the recommendations will compel the sale of (to separate financial and non-financial holdings and reduce pyramid structures)
"The recommendations without our change will render the building of public holding companies less worthwhile in the future," they write.
Bethel Finance: Google Israel chief to head Africa region
www.bethelfinance.com
Google Inc. (Nasdaq: GOOG) has expanded the responsibilities of Google Israel, South Africa & Greece managing director Meir Brand to include Ghana, Kenya, Nigeria, Senegal, and Uganda. Google's offices in these countries have 80 employees. The appointment will come into effect on April 1.
Today, only 9% of Africans have internet access, but studies predict that the proportion will rise to 20% by 2015.
Brand was appointed Google Israel managing director in 2005. He previously served as the small businesses manager at Microsoft Israel, after working at Excite Ltd., ICQ, and Booz Allen & Hamilton. He has an MBA from Harvard Business School.
Google Inc. (Nasdaq: GOOG) has expanded the responsibilities of Google Israel, South Africa & Greece managing director Meir Brand to include Ghana, Kenya, Nigeria, Senegal, and Uganda. Google's offices in these countries have 80 employees. The appointment will come into effect on April 1.
Today, only 9% of Africans have internet access, but studies predict that the proportion will rise to 20% by 2015.
Brand was appointed Google Israel managing director in 2005. He previously served as the small businesses manager at Microsoft Israel, after working at Excite Ltd., ICQ, and Booz Allen & Hamilton. He has an MBA from Harvard Business School.
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