Hillel Koren
Displayed with permission from Globes (Israel)

The sale of the Russian operations subsidiary AFI Development brought about the massive loss.

Africa-Israel Investments Ltd. (TASE:AFIL) reported today that the sale of holdings in AFI Development plc (LSE:AFID), its Russian operations branch, resulted in a huge NIS 2.4 billion loss in the third quarter of 2016, compared with a NIS 6 million loss in the corresponding quarter.

The company, controlled by Lev Leviev, sold its AFI Development holdings for NIS 550 million; in addition to this significant loss, the completion of the deal caused a NIS 1.3 billion crash in owners’ capital.

The company also reported that the profit from leasing and operating properties was NIS 81 million in the third quarter, compared with NIS 87 million in the corresponding quarter. The profit from industrial operations in this quarter was NIS 33 million, compared with NIS 18 million in the third quarter of 2015.

Africa-Israel CEO Avraham Novogrocki said, « The substantial efforts invested in promoting business development continue to be expressed in the financial results of most subsidiaries, and we are pleased to see that the companies reap the fruit of investments made in the past few years. Africa Properties and Africa Residences show boosted of activity reflected in their operating results. In Africa Industries, we continue promoting several efforts to stabilize the company. The company’s results for the quarter, a company still deep in the debt settlement process, are marked by the AFI Development sale deal and the major loss that resulted from the sale. »

Published by Globes [online], Israel business news – www.globes-online.com – on November 29, 2016

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