First Israel Turnover Enterprise (FITE) fund yesterday signed an MOU to acquire 39.2% of Melta-Inter Industries Ltd. (TASE:MALT) from shareholders who own 70% of the company altogether, for $5 million. FITE is a sister fund of Ishay Davidi’s First Israel Mezzanine Investors Ltd. (FIMI).
Under the agreement, FITE will inject $4 million into Melta-Inter in exchange for an allocation of shares, and will also buy shares from the controlling shareholders for $1 million, giving FITE control of the company. FITE also signed a two-year management agreement at a monthly fee of $7,500-10,000.
Melta-Inter’s market cap is the same as its shareholders’ equity of NIS 29.4 million at the end of the second quarter of 2005. It’s balance sheet total was NIS 107.6 million. The deal with FITE reflects a company value 90% above Melta-Inter’s market cap.
Founded in the 1970s, Melta-Inter has two main areas of business: Inter-Electric Ltd., which specializes in industrial products; and Melta Printed Circuit Boards Ltd., which specializes in the design and manufacture of electrical printed circuit boards for the electronics and defense industries. Melta-Inter has 220 employees, mostly in manufacturing.
Melta-Inter posted NIS 122.4 million in revenue in 2004.
Published by Globes [online], Israel business news - www.globes.co.il - on September 1, 2005