The continued fall of some of Israel’s financial giants have analysts worried. On Thursday, Africa Israel (Lev Leviev) and the Delek Group (Yitzchak Tshuva) both took a beating on the market.
On Thursday, Africa Israel shares plummeted 30.46%, culminating in a fall of over 92% since the beginning of the year. Delek Group on Thursday fell 29%, bringing it losses since the beginning of the year to 85.6%.
As was reported earlier by YWN, the fall of Africa Israel is directly impacting many mosdos, since Leviev is a major contributor to many organizations, especially Chabad in Russia and around the world.
The following report is from Globes:
Lev Leviev is selling properties in New York as he looks to pare down the debts of Africa-Israel Investments Ltd. Subsidiary Africa Israel Holdings USA Corporation has closed on the deal to sell the properties at 23 Wall Street and 15 Broad Street in New York City’s financial district to a Far Eastern investment fund for $150 million. The company has also allocated 49.9% of the rights in The Clock Tower for $149.7 million. The sale of The Times Building for an undisclosed amount is contingent upon obtaining permission of the lender.
The three deals were first reported at the end of August.
Africa-Israel said that the property sales will reduce its debt by $118.5 million, not including a deal for The Times Building. The company will report a capital gain of $6.2 million on the sale of the properties at 23 Wall Street and 15 Broad Street, but will report no material gain on the rights allocation in The Clock Tower deal.
Africa-Israel did not disclose the name of the buyer. It noted that the parties will each have two directors on the steering committee for The Clock Tower so long as the ownership remains at 50.1/49.9%, and that Africa-Israel continues to manage it. Each party has first refusal rights in any sale of the property.
Africa-Israel still owns properties at 111 Fulton Street and 60 Ann Street in Lower Manhattan.
Africa-Israel’s share rose 3% in early trading on the TASE today to NIS 27.38
(Yechiel Spira – YWN Israel)
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The USA New York Empire State index and the Philadelphia Fed index are expected to show manufacturing falling deeper into a recession. Reports on housing and leading economic indicators are forecast to show declines. And the minutes from the last Fed meeting are likely to show the central bank’s concerns when it cut interest rates last month. All of these reports could send stocks lower.
The thing to remember is that this is the last and final financial downfall before Moshiach arrives in the near future, all we can do is Daven for the Geulah to come real fast.