Israel Chemicals Ltd. (ICL) advanced the most in more than a week on bets declines last month after Potash Corp. of Saskatchewan Inc. scrapped a proposed takeover bid were overdone.
The shares gained 1.9 percent, the most since April 23, to 42.99 shekels at 2:24 p.m. in Tel Aviv. They slumped 9.3 percent last month, making it the second-worst performer on Israel’s benchmark TA-25 Index. The measure was little changed today.
Potash Corp. on April 25 scrapped the proposed bid after Israeli workers and politicians opposed what would have been the second-largest takeover in the Middle East. Finance Minister Yair Lapid said last month he would reconsider how resource developers are taxed and would set up a panel to re-examine what he called “the state’s rights” in natural resources that are managed by private companies.
“At current price levels the shares present an attractive entry point,” said Roni Biron, a Tel Aviv-based analyst at UBS AG (UBSN), who has a buy rating on the share. “The uncertainty over a potential royalties increase is an overhang in the near term, but the scope for a meaningful hike in royalties is limited.”
Israel Chemicals said in July its Dead Sea Works unit signed an agreement with the government to raise royalty on annual potash sales exceeding 1.5 million tons to 10 percent from 5 percent.
Israel Chemicals’ controlling shareholder Israel Corp. advanced 0.7 percent to 2,310 shekels. The shares were the worst performer on the TA-25 last month.
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