2023-12-05 12:37:00
Carso Motors’ Stock Jumps 12% Amid Purchase Offer
Carso Motors’ stock saw a significant jump of about 12% in trading on the Tel Aviv Stock Exchange following a purchase offer for 4.87% of the shares at a price of NIS 14.5 per share. This offer from interested parties reflects a premium of 8% over the closing price of the stock yesterday and a more modest premium of about 3% over the average price over the last six months.
The current share price now stands at NIS 14.89. In response to the purchase offer, Carso Motors is estimated to receive approximately 65% of a million shekels.
The current environment has seen a decrease in car importers’ sales, but Carso Motors’ controlling owners are taking advantage of the crisis to increase their holdings. This is the second procurement offer in two weeks published by the controlling owners of the industry, following a partial purchase offer of Delek Automotive by Gil Agmon.
Despite the challenges posed by the decrease in sales, Carso Motors sold about 2,400 Chery vehicles in the third quarter, with revenues from the vehicle sector jumping 118% compared to the third quarter of last year to NIS 746 million. However, currency changes and high financing costs weighed on Carso Motors in the third quarter of this year, even before the war. As a result, the company concluded the third quarter with a 22% decrease in net profit, totaling NIS 41 million compared to approximately NIS 84.7 million in the corresponding quarter last year.
The company’s stock jump and the purchase offer suggest a strategic and forward-looking approach by the controlling owners, aiming to navigate through the current challenges and capitalize on opportunities in the market.
#Carso #jumps #background #purchase #offer #shares #premium