MIRA
INFORM REPORT
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Report Date : |
19.01.2007 |
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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