MIRA
INFORM REPORT
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Report Date : |
17.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
MOSHE NAMDAR & CO. LTD. |
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Registered Office : |
54 Bezalel Street, Diamond Exchange, Yahalom
Tower, Ramat GAN 52521 |
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Country : |
Israel |
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Date of Incorporation : |
29.11.2004. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
International Traders in Diamonds, Dealing as
Cutters, Processors, Importers, Exporters and Marketers of Diamonds. |
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 : |
No Complaints |
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Litigation : |
Clear |
name & address
MOSHE NAMDAR & CO. LTD.
Telephone 972
3 576 70 00
Fax 972
3 613 24 89
54 Bezalel Street
Diamond Exchange, Yahalom Tower
RAMAT GAN 52521 ISRAEL
HISTORY
A private limited company, incorporated as per file No. 51-361278-8 on the
29.11.2004.
Subject is continuing part of the activities of SCHACHTER & NAMDAR
POLISHING WORKS LTD., incorporated in 1981, after the company's partners
decided to split their activities during 2004 (following which latter company
changed its name into LEO SCHACHTER DIAMONDS LTD.).
SHARE
CAPITAL
Authorized share capital NIS 100,000.00, divided into -
100,000 ordinary shares, of NIS 1.00 each, fully issued.
SHAREHOLDERS
1.
Moshe Namdar, 99%,
2.
LEO SCHACHTER DIAMONDS LTD., 1%.
DIRECTORS
1.
Moshe Namdar, General Manager,
2.
Ms. Yael Namdar, daughter of Moshe,
3.
Itzhak Livian,
4.
Edmond Algilan,
5.
Haim Habif.
BUSINESS
International traders in diamonds, dealing as cutters, processors,
importers, exporters and marketers of diamonds.
Among local
clients: B. BRIZA COLORS DIAMONDS, S.N. ASIA ISRAEL.
Operating from premises in 54 Bezalel Street (also called 21 Tuval Street),
Yahalom Tower (21st Floor), Diamond Exchange, Ramat Gan.
Also operating from plants and offices in South Africa, and offices in
Belgium, New York and the Far East.
Having in all 100 employees, including 60 employees in Israel.
MEANS
Financial data not forthcoming, however known to be financially strong.
According to reports from February 2004, former parent LEO SCHACHTER
DIAMONDS owns a Sight from DE BEERS and is the largest receiver from a DE BEERS
Sight in volume of US$ 150-200 million per year.
There are 6 charges for unlimited amounts, as well a 1 charge on the sum of
US$ 5,000,000.00 registered on the company's assets, in favor of Bank Leumi
LeIsrael Ltd. and First International Bank of Israel Ltd.
ANNUAL
SALES
SCHACHTER & NAMDAR POLISHING WORKS LTD.
sales for export were
US$ 417,000,000.
SCHACHTER & NAMDAR POLISHING WORKS LTD.
sales for export were
US$ 434,000,000.
Subject's 2005 sales for export were US$
185,000,000.
Parent LEO SCHACHTER DIAMONDS 2005 sales for
export were
US$ 418,000,000.
2006 sales for export were US$ 204,000,000.
2007 sales for export were US$ 199,000,000.
OTHER COMPANIES
SHECHTER AND
NAMDAR HOLDINGS LTD., a holding company.
LEO SCHACHTER DIAMONDS LTD., Moshe Namdar holds 3.83% in this
leading diamond company (dealing in the same field as subject).
GAMBIT COMPUTER
COMMUNICATION LTD., 18.3%, controlled by by the Namdar family, investment and
financial services.
ESCOPA LTD.,
controlled by the Namdar family, a real estate company,
MOSHE NAMDAR GEMS
LTD.
EURO-SAT
INVESTMENTS LTD., a public company, dealing in real estate in European markets,
controlled by Avraham Namdar (36.2%, brother of Moshe) and Moshe Namdar (5.4%).
Shares are traded on the Tel Aviv Stock Exchange, with current market value US$
15.8 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.
Bank Leumi LeIsrael Ltd.
First International Bank of Israel Ltd.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Subject’s officials refused to disclose financial and banks data.
Mr. Moshe Namdar
is a well-known veteran diamond dealer. Subject is known worldwide and enjoys
an excellent reputation in the market.
In 2007, subject
was ranked 3rd largest diamond exporter, according to the report
published by the Israel Supervisor on Diamonds in the Ministry of Industry and
Trade, same rank as in the 2006 and 2005 lists of Israel's largest polished
diamonds exporters.
Former parent
company, LEO SCHACHTER DIAMONDS, is ranked 2nd
largest. Until 2004, all activities were under the joint company SCHACHTER & NAMDAR, which was ranked 2nd
largest
in 2004 after L.L.D. DIAMONDS LTD.
In February 2004 SCHACHTER & NAMDAR announced a structural change in
the Group and the establishment of subject (initially as a subsidiary), in
order to maximize potential, where each party will focus on different markets.
In the beginning of 2007 the split was completed between the activities of the
Namdar Brothers, Moshe Namdar and Abraham Namdar and the LEO ASCHACHTAR Group.
In practice, that also brought to a split between the activities of the Namdar
Brothers, Moshe Namdar (in subject) and Abraham Namdar.
According to a
report from August 2005, subject acquired one whole floor in the Yahalom Tower Diamond Exchange in Ramat Gan. The deal was in frame of the sale of 10
floors in the tower to other diamond companies and for total of US$
45 million.
According to the
Diamond Administration Director, year 2007 was full of challenges to the global
diamond branch, but the Israeli diamond branch coped with it well.
It should be noted
that Israeli diamond dealers note some slowdown in activities since mid 2007,
attributed to the sub-prime crisis in the U.S markets.
Year 2007 marked a record in the export of cut diamonds from Israel,
with net sales for export of US$ 7.076 billion, 7% rise from 2006 (US$ 6.611
billion). Total export of cut and rough diamonds crossed for the first time the
US$ 12 billion line. Exports (net) of rough diamonds were US$ 3.386 billion, a
25.5% increase from 2006 (US$ 2.701 billion, which was a 23.2% decrease from
2005).
Import of rough diamonds (net) rose 8% in 2007 by (from 2006) to
US$ 5.084 billion, while import of cut diamonds (net) also increased in 2007 by
13.3% reaching US$ 4.558 billion.
The USA is the
main market for Israel’s export of cut diamonds (over 50%). The secondary
markets are Hong Kong (around 18%), Belgium (around 8%), Switzerland (6%) and
India (1.5%).
SUMMARY
Notwithstanding
the refusal to disclose financial related data, considered 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. |
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%)