Optibase Ltd. (Nasdaq: OBAS: TASE:OBAS) has acquired an additional 5% of Scopus Video Networks Ltd. (Nasdaq:SCOP) for $4 million in its second offer to purchase. Optibase now owns 28% of Scopus. The first offer to purchase was unsuccessful. Both companies develop products for internet protocol television (IPTV) and digital video.
Optibase said, “As of 5:00 p.m. New York City time on Thursday, August 23, 2007, based on information provided by the depository of the tender offer, 4,892,264 shares were validly tendered and no shares were represented by notices of objection.” On August 22, 2007, the closing sale price of Scopus shares was $5.30 on Nasdaq.
In January, Optibase acquired 23% of Scopus. In July, the company published an offer to purchase 5% of Scopus at $5.25 per share, a premium of 5.8% on the market price at the time. Scopus’s board recommended rejecting the offer.
Three weeks ago, Optibase extended its offer and raised the price to $5.75 per share, giving a premium of 13.9% on Scopus shares. Although Scopus’s board again advised rejecting the offer, the offer was accepted.
Optibase has $22.6 million in cash, and has announced plans to raise up to $50 million in an issue of convertible bonds. The company has not said when it will hold the offering. The company dual listed its shares on the Tel Aviv Stock Exchange (TASE) for the purpose of the bond issue.
Optibase has a market cap of $50 million and Scopus has a market cap of $70 million. Last week, Optibase announced a strategic cooperation agreement with Chinese telecommunications equipment and network solutions provider ZTE Corporation, which will use the company’s media gateway platforms in its IPTV products.
Published by Globes [online], Israel business news - www.globes.co.il - on August 26, 2007
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