Harel Insurance Investments Ltd. (TASE: HARL) has invested NIS 9 million in Netex (Net Express) Ltd. (TASE:NTX) through a private placement of Netex shares. The transaction turns Harel into a party at interest in the customized online advertising company, as the fourth largest shareholder with an 11% holding.
Harel paid NIS 20 per share, a 10% discount on Netex's market price. Netex said the discount was because of restrictions on the sale of the shares.
Netex's search engine is placed on the browser as a toolbar, enabling the user to find websites without the need to type in full address. The company has expanded its international activity over the past year, including granting a franchise to Russia communications company Golden Telecom and expanding its collaboration with Google Inc. (Nasdaq:GOOG). Netex has a market cap of NIS 84 million, after rising 130% since January.
The deal with Harel brings a major institutional investor into Netex for the first time since its IPO 17 months ago. Under the agreement, Harel may not sell the shares for six months. Other parties at interest in Netex are Eliahu Nachiasi with a 24% stake, Liberty Partners with 16%, Netex CEO Aviv Refua with 15%, and his father, Zeev Refua with 6%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2007
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