Bio-cell will probably receive $17 million for its shares.
Bio-cell Ltd. (TASE: BCEL) is to sell part of its holding in Protalix Biotherapeutics Inc. (AMEX:PLX) as part of the offer for sale recently announced by the latter as part of a secondary offering. Bio-cell currently holds 22% of Protalix (18% fully diluted), and said that it would offer up to 10% of its holding, amounting to 2.2% of Protalix's total share capital. The value at which Protalix will make the sale offer is not yet known, although it is believed to aiming to raise $100 million at a value of $800 million.
Protalix develops recombinant protein-based drugs based on its proprietary plant cell culture. It was merged with market shell Orthodontix Inc. at the end of 2006. Protalix currently has a market cap of $2.4 billion, a questionable valuation given that the firm is reportedly basing its sale on a valuation of $800 million.
If the Protalix offering is held at a value of $800 million. Biocell could make up to $17 million on the sale of shares in the offer for sale.
Published by Globes [online], Israel business news - www.globes.co.il - on September 11, 2007
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