MIRA
INFORM REPORT
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Report Date : |
09.08.2007 |
IDENTIFICATION DETAILS
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Name : |
LEO SCHACHTER
DIAMONDS LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
13.07.1981 |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Diamond cutters, processors, traders,
importers and exporters. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
LEO SCHACHTER DIAMONDS LTD.
Diamond Exchange,
Telephone 972 3 576 62 22
Fax 972 3 613 24 89
HISTORY
A private limited company, incorporated as per
file No. 51-089213-6 on the 13.07.1981, continuing a non-registered business
founded years earlier.
Subject was founded by the Late Leo
Schachter and David Namder. It was originally registered under the name
SCHACHTER & NAMDAR POLISHING WORKS LTD., which changed to LEO SCHACHTER
LTD. on the 30.8.2005 and finally changed to the present name on the 24.7.2006.
During 2004
subject's shareholders decided to split their activities, and part of the
activities were transferred to a newly established subsidiary MOSHE NAMDAR
& CO. LTD.
SHARE CAPITAL
Authorized share capital
of which shares amounting to
SHAREHOLDERS
1. LEO SHECHTER & CO. INC., of the USA, 50.51%,
owned by the heirs of Leo Schachter, the Tenenbaum and Greenberg families, and
Avraham Namdar.
2. Moshe Namdar, 49.49%.
DIRECTORS
1. David Greenberg,
2. Eliot Tenenbaum,
3. Dov Tenenbaum,
GENERAL MANAGER
Asher Baharav
BUSINESS
Diamond cutters, processors, traders,
importers and exporters.
Almost all sales are for export.
Operating from owned premises in
Also operating from
several plants and offices in
Having over 100
employees in
MEANS
Financial data not forthcoming, but
considered to be financially solid.
Subject owns a Site
from DE BEERS. According to reports from February 2004, they are the largest
receiver from a DE BEERS Site in volume of US$ 150-200 million per year.
There are 9 charges for unlimited amounts
registered on the company's assets, in favor of local banks.
ANNUAL SALES
SCHACHTER &
NAMDAR POLISHING WORKS LTD. sales were:
1998 sales for export reported to be US$ 238,000,000.
1999 sales for export reported to be US$ 373,000,000.
2000 sales for export reported to be US$ 476,000,000.
2001 sales for export reported to be US$ 394,000,000.
2002 sales for export reported to be US$ 441,000,000.
2003 sales for export reported to be US$ 417,000,000.
2004 sales for export reported to be US$ 434,000,000.
Subject's 2005 sales
for export were US$ 418,000,000.
LEO SHECHTER Group 's estimated global
turnover in 2004 was US$ 1,000,000,000.
OTHER COMPANIES
MOSHE NAMDAR &
CO. LTD., 100% subsidiary,
operates in the same line as subject.
MOSHE NAMDAR GEMS LTD.
SN ASIA ISRAEL LTD.
SHECHTER AND NAMDAR HOLDINGS LTD., a holding
company.
OPTIBASE LTD., 7.65% held by Avraham and
Moshe Namdar, developers, manufacturers, exporters and marketers of
communication and multimedia software solutions. A public company, shares are
also traded on the Nasdaq Stock Exchange, with current market value US$ 51
million.
GAMBIT COMPUTER COMMUNICATION LTD., 18.3%,
controlled by subject’s shareholders, investment and financial services.
ESCOPA LTD., controlled by subject’s
shareholders, a real estate company,
Subject’s shareholders are also involved in
other local and foreign companies in the diamonds, finance and investment
areas.
EURO-SAT INVESTMENTS LTD., a public company,
dealing in real estate, controlled by Avraham Namdar (36.2%) and Moshe Namdar
(5.4%). Shares are traded on the Tel Aviv Stock Exchange, with current market
value US$ 10 million.
Subject’s shareholders are also involved in
other local and foreign companies in the diamonds, finance and investment
areas.
BANKERS
Known to all local
bankers. Working with:
Israel Discount Bank
Ltd., Diamond Exchange Branch
(No. 080),
Bank Leumi LeIsrael
Ltd.
First International
Bank of Israel Ltd.
CHARACTER AND
REPUTATION
Nothing unfavorable learnt.
Subject’s officials refused to disclose any
details.
According to the report published by the
Israel Supervisor on Diamonds in the Ministry of Industry and Trade, subject
was ranked 2nd in the 2005 list of
Subject enjoys excellent reputation in
In 1995 it was reported that subject’s
shareholders acquired 2 floors (21st and 22nd floors-
total of 2,300 sq. meters) in the
In July 2003, it was reported that subject
will own 49% in a new diamond processing plant in
In February 2004
subject announced a structural change in the SCHACHTER & NAMDAR Group and
the establishment of a subsidiary MOSHE NAMDAR & CO. LTD, that, in order to
maximize potential where each party will focus on different markets. In
practice, that brought to a split between the activities of the Namdar
Brothers, Moshe Namdar (in subsidiary) and Abraham Namdar.
It was also reported that subject is
operating to strengthen its global activities in addressing the fast emerging
Chinese market, and by strengthening the "Leo" diamonds brand in the
American, British and Italian markets.
In February 2004, it was reported that
subject will establish a partnership with WILLIAM GOLDBERG DIAMONDS of the
In May 2005, it was reported that the SCHACHTER &
NAMDAR Group acquired a 3,000
sq. meters plot in central Tel Aviv, for a sum of US$ 15 million. The plot is
designed for 18 story building, for residential and commercial purposes.
According to a report from November 2006,
the diamonds branch is on the verge of a significant recuperation after the
deep crisis it got into, the worst one for decades, which affected the
profitability of Israeli diamond businesses. World sales towards Thanksgiving
Day grew by 10% comparing to 2005. That already led to a rise in rough
diamonds.
According to the Ministry of Industry and
Trade, the local diamonds branch managed to stabilize the total volume of
export of cut diamonds during
Total (net) export of cut diamonds from
Israel in 2006 reached US$ 6.610 billion, a mere decrease of 1.5% from 2005
(US$ 6.709 billion). Exports (net) of rough diamonds were US$ 2.701 billion, a
23.2% decrease from 2005 (US$ 3.517 billion, which was a 20.6% increase from
2004).
Import of rough diamonds (net) also fell in
2006 by 11.4% (from 2005) to US$ 4.709 billion, while import of cut diamonds
(net) increased in 2006 by 3.3% reaching US$ 4.025 billion.
The
SUMMARY
Good for trade engagements.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)