Scailex Corp. ltd. (Nasdaq: SCIX; TASE: SCIX) (formerly Scitex) long ago ceased being an active company. It has sold off its assets and subsidiaries, leaving it with one main asset: $247 million in cash at the end of the second quarter of 2006. Nasdaq has reached the same conclusion, and notified Scailex that its ordinary shares will be delisted from The Nasdaq Global Market at the opening of business on September 18, 2006.
Nasdaq said Scailex “no longer has an operating business and is therefore a public shell.” A shell with a lot of cash, it’s true, but no business.
Scailex said its ordinary shares would continue to trade on the Tel Aviv Stock Exchange (TASE) and, when delisted from the Nasdaq Global Market, that it expected that its shares might become eligible for quotation on the OTC Bulletin Board and/or on the Pink Sheet. The company said it would continue to be obligated to file periodic, quarterly and annual reports with the Securities and Exchange Commission (SEC). Scailex has a market cap on Nasdaq of $265 million.
In July, the change in ownership at Scailex was completed, in which Israel Petrochemical Enterprises Ltd. (TASE:PTCH) controlling shareholder David Federmann acquired 49.4% of Scailex for $165 million.
Published by Globes [online], Israel business news - www.globes.co.il - on September 12, 2006
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