IDB Development Corporation Ltd. (TASE:IDBD) controlling shareholder Eduardo Elsztain is attempting to strengthen the confidence of the creditors of IDB Development subsidiary Discount Investment Corporation (TASE: DISI) in his ability to support both companies. He yesterday sent a letter to the boards of directors of the two companies proposing to increase his capital injection into IDB Development, some of which will be used by the company to take part in Discount Investment’s rights issue.
In early May, Elsztain made a proposal to IDB including an undertaking on his part to inject a further $26.3 million into the company in the framework of a financing round of up to $32.8 million in October. This round was slated to take places in two stages: one in October, and one in November. Elsztain is now proposing to double the size of the issue, in which his share will be up to $52.6 million…
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Published by Globes [online], Israel business news – www.globes-online.com
