Israel In-Focus: Elbit To Buy Mikal Subsidary Stakes
(Comment on this article at http://www.financialwire.net/2010/09/03/elbit-to-buy-mikal-subsidaries/)
September 3, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today's featured news.) -- Elbit Systems Ltd. (NASDAQ: ESLT) said it has signed an agreement to acquire all the shares of Soltam Systems Ltd., Saymar Ltd. and ITL Optronics Ltd., that are currently held by Mikal Ltd. and its subsidiaries. The signed agreement provides for the acquisition of Mikal's interests in the above mentioned Mikal subsidiaries, which Elbit said are synergetic to its own operations, rather than the acquistion of Mikal itself, as was contemplated in Elbit Systems' prior announcements.
Upon completion of the acquisition, Elbit Systems will hold, a 100% interest in Soltam and Saymar, and a 87.85% interest in ITL. The balance of ITL's shares, which are traded on the Tel Aviv Stock Exchange, is held by the public. Simultaneously, Elbit Systems will sell its existing holdings in Mikal (around 19%) to the other Mikal shareholders.
Elbit will pay around $87 million for the acquisition. The consideration to be paid to Elbit Systems for its 19% holding in of Mikal's shares will be $18 million. In addition, the agreement contains a provision for possible future payments to Mikal subject to the acquired subsidiaries achieving certain business goals.
The closing of the transaction is subject to certain approvals that the parties expect to obtain in the near future.
Israel-based Elbit Systems is a defense electronics company engaged in a range of programs. The company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance, unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios.
The company also focuses on the upgrading of existing military platforms, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services.
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