Leviev's Africa-Israel to float Russian assets at $4.2-5.5b value

Globes: The company aims to raise $1-1.2 billion:

Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), controlled by chairman Lev Leviev, is entering the final straight in the flotation of its assets in Russia on the London Stock Exchange. Sources inform "Globes" that the value of the Russian asset company, AFI Development, in the road show that will start in the next few days will be $4.2-5.5 million before the money.

The company aims to raise $1-1.2 billion, so it's minimum value after the flotation will be $5.2 billion. Africa-Israel will post a capital gain of NIS 2.3-3.2 billion, one of the largest ever posted by an Israeli company on an overseas flotation, if not the largest.

It is normal practice to add to a valuation of this kind a premium that takes into account the ability of management to bring further deals to the company being floated. This premium can range between 10% and 50% of the value of the assets, hence the company value in this flotation. Africa-Israel says it is at various stages of buying rights in additional projects in Russia amounting to 1.5 million sq.m. in total.