Published On: Sun, Sep 28th, 2014

Israel Chemicals begins trading on NYSE

Israel Corp. has sold 60.2 million Israel Chemicals shares at $7 per share – an 8% discount on its TASE closing price on Tuesday.

Idan Ofer

Israel Chemicals Ltd. (TASE: ICL) offering on the New York Stock Exchange (NYSE) began Tuesday night after the markets on Wall Street closed. As part of its offer to sale, parent company Israel Corporation (TASE: ILCO) sold 36.2 million shares to the US public and institutional investors for an expected net amount of $243 million.

At the same time, Israel Corp. has implemented a financial deal to sell to Morgan Stanley and Goldman Sachs 36.2 million Israel Chemicals shares transferred on the name of the financial bodies against a $191 million loan. Of these, 24 million shares will be offered for sale by the underwriters as part of the prospectus issued in New York by Israel Chemicals.

Thus as part of the offer to sale and the financial deal, Israel Corp. sold 60.2 million Israel Chemicals shares at about $7 per share, an 8% discount on the company’s closing price of about $7.60 per share on the Tel Aviv Stock Exchange on Tuesday evening. This probably explains the shares sharp falls over Monday and Tuesday.

Israel Chemicals shares begin trading on the NYSE on Wednesday.

As part of the deal, the underwriters have an option to buy about 6 million more shares over the next 30 days. If the option is fully realized by the underwriters, Israel Corp.’s holding in Israel Chemicals will fall to 49.1% in equity and 46.2% in voting rights. Following the sale no profit will be recorded and the growth in the company’s equity will be about $150 million.

Israel Chemicals CEO Stefan Borgas said, “Our listing on NYSE, the world’s premier stock exchange, will broaden our global investor base, improve the liquidity of our shares and provide our company with greater access to global capital markets. It will also increase our flexibility in managing our capital structure and better align ICL with its major industry peers. While Israel is, and will remain, our home base, our listing on the NYSE represents another important step in our efforts to secure and strengthen our financial and operational position as a global leader providing for the essential needs of humanity in the food, agriculture and engineered materials markets.”

Published by Globes [online], Israel business news – www.globes-online.com

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