Bloomberg News

Gazit Globe Rises After Selling 3.6 Percent Stake to Alony Hetz

June 01, 2009

Gazit-Globe (GLOB) Ltd., an Israeli developer of commercial real estate, rose the most in almost two weeks in Tel Aviv trading after it said it will sell a 3.62 percent stake to Alony Hetz Properties & Investments Ltd. (ALHE)

Gazit-Globe climbed for a fourth day, rising 2.9 percent to 23 shekels at the close, the most since May 19. The company’s shares have risen 33 percent this year.

“The company is doing all the right things to lower its risks and become more liquid,” said Tzvika Fixler, an analyst at Tel Aviv-based Union Bank of Israel. “Investors can see that the company is diversifying its portfolio so it’s a reassuring move.”

The company agreed to sell 4.7 million shares to Alony Hetz at 23 shekels each, Gazit-Globe said today in a statement to the Tel Aviv Stock Exchange. The company will receive 109 million shekels ($28.1 million) in bonds of First Capital Realty Inc. (FCR) from Alony in exchange for the shares.

To contact the reporter on this story: David Wainer in Tel Aviv at dwainer1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net.


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