Telit sells Dai Telecom stake for €6.5m

Telit Communications plc (AIM:TCM) has sold 80.1% of Dai Telecom Ltd., which handles the company’s end devices business in Israel, for €6.5 million to a group of Israeli investors led by Yosi Fait and Amit Biel. Telit is keeping the remaining 19.9% stake in the company.

Telit sold the stake for €500,000 in cash and up to a maximum of €6 million in royalties for the right to use the Telit label for cellular products for five and a half years. The latter figure is contingent on Dai Telecom’s sales, and the amount paid could be less if sales are low. Telit said, “Through this transaction, Telit is delivering on its strategy to focus its full attention on the rapidly expanding m2m division, which is Telit's main business.” It added that the unit “reported an operating loss of €1.5 million” in 2006.

Fait formerly served as CEO of H&O Fashion Ltd. (TASE:HAO) and VP development and CFO at Pele-Phone Communications Ltd.. He and Biel control Euro Trade Real Estate International (YTB) Ltd. (TASE:ERTR.B1), which owns income-producing properties in Europe.

Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2007

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