The deal values Formula at $201 million, 56% above market.
Formula Systems (Nasdaq: FORTY; TASE: FORT) controlling shareholder Dan Goldstein has finally succeeded in selling his holdings in the company. Goldstein sold his 33% stake to Emblaze (LSE: BLZ) CEO and controlling shareholder Eli Reifman for $67 million. The acquisition reflects a company value for Formula of $201 million, which is 56% higher that its market price yesterday.
Formula is Israel’s largest holding company in the high-tech field. The shares that were sold were owned by Fimgold Partnership Ltd., controlled by First Israel Mezzanine Investors Fund (FIMI). FIMI is jointly controlled by Ishay Davidi and Dan Goldstein.
FIMI entered Formula two and half years ago. It acquired 18% for $36 million, a deal which reflected a similar value to that of the latest share sale to Emblaze. FIMI collected a massive dividend of NIS 231 million on the sale.
Published by Globes [online], Israel business news - www.globes.co.il - on September 12, 2006
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