Empire Online Ltd. (AIM: EOL) cofounder Arnon Katz, is completing another stage in his separation from the company and selling half of his stake to cofounder Noam Lanir, nearly a decade after its founding, and while the company is adjusting itself to the new US legislation in the online gambling industry,
Empire Online, which currently trades on London's Alternative Investment Market (AIM), announced this morning that Lanir acquired 30 million shares at a price of ₤0.31 per share, or ₤12.3 million, from Katz. Following the acquisition, Lanir's holdings grew to 32.6% of the company, while Katz's stake is now 10.3%. The two hold shares of Empire Online through a company which they own in a tax shelter.
Lanir's acquisition is at an 8% discount over the market price, as is customary in transactions between interested parties, whose investment has already borne significant earnings. Empire Online trades at a market value of $250 million, slightly less than the value of its cash reserves, which are valued at $260 million.
Published by Globes [online], Israel business news - www.globes.co.il - on November 8, 2006
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