The management of Discount Investment Corporation, headed by Ami Erel, is putting together a work plan for 2002 according to which it will maintain its stake in cash generating companies and companies that add value to its portfolio, and sell those that are losing or simply not profitable, sources close to the company have reported.
In its discussions the company said Super-Sol (NYSE:SAE) and Property and Building Corporation (TASE:PTBL) were two cash generating companies. The companies with potential of adding value to Discount Investment are Tevel, Cellcom, Global Village Telecommunications, Syntec and some of Elron Electronic Industries (Nasdaq:ELRN)'s technology sector holdings.
Discount Investments is likely to sell its holdings in Brinks, Maxima and Albar, the largest car leasing company in Israel. According to the same criteria, Discount Investment in the last few months sold Newpan, Telad and Kalil.
Recently the company considered selling Elron as well, but negotiations for the sale never matured. Discount is still undecided on its stake in Scitex (Nasdaq:SCIX), in itself a holding of its sister company Clal Industries & Investments, both of which are managed by Clal CEO Meir Shannie.
The work plan defines criteria for new investments. The management of Discount Investment is to increase its overseas holdings through international partnerships, based on a strategic plan put together by the controlling shareholders in IDB Holdings, which is the controlling shareholder of Discount Investment, which includes Leon Recanati, the Carasso family and Kardan Investments, and recently also the Australian LFG.
Discount Investments is delaying its decisions regarding new investments until the control group is fully formulated, at the end of February 2002.
The plan is to increase overseas activity of groups such as Mashav through their international partnerships.