Having concluded painful debt settlement arrangements with bondholders and banks, and with around €200m in short-term bonds to pay by May 2011, AFI Europe hopes to raise €130m to float a mixture of new and old shares. Haaretz gives the details:
AFI Europe’s ownership equity totaled 198 million euro (NIS 966 million) at the end of June. Along with owners’ loans extended by Africa-Israel Properties totaling 265 million euro (NIS 1.3 billion), the company’s total economic equity was 463 million euro (NIS 2.26 billion).
The intention is to raise 130 million euro (NIS 635 million), with the expectation that this will yield 100 million euro (NIS 490 million) for new capital, with the 30 million euro (NIS 146.5 million) balance being an offer of existing shares from the parent company, to go toward paying down its bond debt and completing projects in Israel.