AFI Says Stock to Stay Listed

TEL AVIV -- Israeli conglomerate Africa Israel Investments does not plan to delist its London-listed subsidiary AFI Development, a market source quoted the company's chairman as saying last week.

Billionaire Lev Leviev, who controls Africa Israel, said at an analysts' meeting in London that he would not delist the unit, the source who was at the meeting said.

TheMarker financial web site reported earlier last week that Africa Israel, which owns 71 percent of the Russia-focused real estate company, is considering delisting the shares because of a sharp drop in AFI's value.

The report said Africa Israel could either offer to buy up AFI or AFI could hold a share buyback.

AFI Development's shares were up 13.6 percent to $2.5 in London on Tuesday.

The company went public in May 2007 at a price of $14 a share and a market capitalization of $7.3 billion. Its net profit nearly doubled in the first of half of 2008 to $97.3 billion.

Africa Israel, a conglomerate with numerous real estate projects in the United States and Russia, declined to comment.

The source also cited Leviev as saying he was optimistic regarding AFI Development's plans in Russia.

He said that although foreign investors are fleeing the country, AFI has the financing and the ability to advance all its plans, the source added.