Published On: Mon, Jun 10th, 2013

Elsztain: we invest for the long term in IDB

The future of this company will be much better, Eduardo Elsztain told “Channel 2 News”.

Eduardo Elsztain  BLOOMBERG

Eduardo Elsztain / Bloomberg

After the court yesterday ruled that Nochi Danker will receive a two-month extension to save his control of IDB Holding Corp. Ltd. (TASE:IDBH), he and his partner Eduardo Elsztain (chairman of Cresud SACIFYA)  must submit a new offer for a debt settlement and sell part of IDB’s stake in Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). If all goes as planned, in the coming weeks, the Argentinian businessman will become an active partner in IDB. Yesterday, he told “Channel 2 News ” about the decision to invest in the company.
“We held several meetings abroad, ” said Elsztain. “We know that deals of this size usually do not happen overnight. This is a long-term process, and we invest for the long term. We do not intend to be merely passive investors, but to create value.”
This is Elsztain’s first big investment in Israel. His main business is real estate. With this investment, he has mainly been busy in court and meeting creditors. “We, as investors, are very optimistic, precisely when everyone has become pessimistic about a particular asset. IDB is a great asset and it is an excellent company, which is being tested. We believe that it will pass the test.”
Elsztain is especially optimistic in the wake of the court’s decision. “The ruling is favorable, ” he said, “It gives the company the opportunity to reach a settlement with all the parties, and we know that when all the parties reach a settlement, the future of this company will be much better than if it were broken up.
“The judge has given two months to reach a settlement. This does not mean that everything will be over, but if what the court has ordered is implemented, I think that the company’s condition will improve.”
Talking about his partner, Dankner, Elsztain said, “I think that he has done many good things for Israeli society.”
Elsztain declined to disclose the group of investors, but it is known that Rabbi Yoshiyahu Pinto introduced the parties. Elsztain said that this was not charity, but business. “We’re not doing charity, and we’re not writing a check for the company because the rabbi (Pinto) told us to. Donations and investments are two different things, ” he said.
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