The offer will be made at NIS 42 per share, a 12% premium on today’s opening price.
Elco Holdings Ltd. (TASE: ELCO), controlled by chairman Gershon Salkind, will soon publish an offer to purchase the public’s holdings in its subsidiary Electra Consumer Products Ltd. (TASE: ELEK).
The offer will be made at NIS 42 per share, a 12% premium on Electra Consumer Products’ opening price today. The share has risen sharply in response to the news. The offer to purchase will cost NIS 183 million.
2006 was a poor year for Electra Consumer Products, which manufactures air conditioners and markets appliances. The company posted a loss of NIS 126 million and underwent a thorough streamlining plan to cope with a difficult market climate. The company fired many employees at its European subsidiaries, and replaced its CEO and other executives.
Electra Consumer Products’ share has risen 21% over the past 12 months, and it now has a market cap of NIS 725 million.
Published by Globes [online], Israel business news - www.globes.co.il - on May 28, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007