Africa-Israel sells Anglo-Saxon and Tadiran Telecom

Africa-Israel's share fell over 4% on the sales.

Africa-Israel Investments (TASE:AFIL; Pink Sheets:AFIVY) chairman Lev Leviev today completed the sale of Anglo-Saxon Real Estate to an investor group, and also signed a term sheet for the sale of it 50% stake in switchboard manufacturer Tadiran Telecom

Today's sales follow yesterday's sale of Africa-Israel stake in Philippine IT park developer Cyberzone Properties Inc. for NIS 63.5 million. Africa-Israel's share fell over 4% by early afternoon today to NIS 47.31, after rising 7.2% yesterday.

Africa-Israel sold its stake in Anglo-Saxon to an investor group led by one of the agency's franchisees, Ronen Sheetrit, reportedly for NIS 23 million. The company sold Tadiran Telecom to customer relations management (CRM) solutions developer Syata Softwarefor a few tens of millions of shekels.

Africa-Israel VP marketing and Anglo-Saxon chairwoman Zvia Leviev, Lev Leviev's daughter, said, "This deal is another successful sale by Africa-Israel at a good return. The deal shows that we're meeting the targets set out in our 2009 work plan. The company received many offers from potential buyers, but it was important to us to give a special opportunity to a man who is a franchisee of the company, knows it, its business, and franchises."

The late David Bloomberg founded Anglo-Saxon in 1964. Africa-Israel and Migdal Insurance and Financial Holdings (TASE: MGDL) jointly bought the agency in 1992. Africa-Israel owned 51% of the agency and Migdal owned 49%. Africa-Israel bought out Midgal in November 2006 for NIS 7.5 million. Earlier this year, Africa-Israel distributed NIS 3 million worth of Anglo-Saxon shares as a dividend in kind.

The agency has 60 branches nationwide with more than 300 agents, and reportedly earns more than NIS 65 million in fees a year.

Sources inform ''Globes'' that Syata owner Moshe Cohen has already taken over Tadiran Telecom and serving as its CEO. Tadiran Telecom employees will reportedly receive a stake in the company, although nothing has been closed. Tadiran Telecom has been in difficulties for a long time and Africa-Israel and its partner in the company, the Shaked brothers, have been trying to sell it for years.

Tadiran Telecom is Israel's largest manufacturer of telephone enterprise switchboards. The company markets its products through Tadiran Telecom Services Ltd., which was sold to Shlomo Shmeltzer.

Published by Globes [online], Israel business news - undefined - on December 29, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009