The offer reflects a 52% premium over Ortal’s current market price.
Tadir-Gan (Precision Products) Ltd. (TASE: TDGN) has made an offer to purchase the public’s stake in Ortal Diecasting (TASE:ORTA) for NIS 10 per share, a 52% premium on Ortal’s market price. Tadir-Gan already owns 73.12% of Ortal, which it bought for approximately NIS 25 million in December 2006.
The deadline for responding to the offer for purchase is July 11.
Tadir-Gan was in news last year over fears that it would suffer from a dispute between Navistar International Corporation (Pink Sheets:NAVZ.PK) subsidiary International Truck and Engine Co. and Ford Motor Company (NYSE:F). International Truck is a contractor for Ford, providing diesel engines for some of the company’s vehicles. The dispute between the companies caused International Truck to abrogate its contract with Ford. Tadir-Gan is a subcontractor in that contract, supplying engine parts to International Truck, which are used in the engines supplied to Ford. The dispute was liable to cost Tadir-Gan tens of millions of dollars in lost sales.
Ortal had €6.7 million in sales for the first quarter of 2007, 20% more than for the corresponding quarter of 2006. The company’s net profit rose 150% to €400,000.
Published by Globes [online], Israel business news - www.globes.co.il - on June 25, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007