After months of rumors and speculation, Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) could be sold in the near future. It is believed that a group headed by Mivtach Shamir Holdings Ltd. (TASE:MISH), one of its current shareholders, is close to signing an agreement for the acquisition of Gilat, after raising its bid to $11.60 per share. The new offer reflects a valuation of $455 million for Gilat, or $483 million fully diluted, and a 14.2% premium over its current market price. According to reports published by "Globes" a month ago, Mivtach Shamir is partnering with Lehman Brothers.
Gilat's share is currently traded at $10.50, slightly higher than the $10 Mivtach Shamir offered in its previous bid in May 2007. Should the offer be approved by the Gilat board and shareholders, and assuming that Mivtach Shamir has the resources to finance in the present market conditions, Gilat will be delisted following the acquisition and will become a privately-held company.
Gilat develops and produces very small aperture terminals for satellite-based communications networks. The company declined to comment on the report. A spokesperson for Mivtach Shamir said the company would not comment on hearsay.
Gilat's largest shareholder is York Capital Management LLC, with a 20.4% stake. The fund became a shareholder in Gilat in 2005, when it acquired part of the stake held by Bank Hapoalim (LSE: BKHD; TASE: POLI). At the same time, Mivtach Shamir raised its stake in Gilat by acquiring another part of the Bank Hapoalim's stake, at a price of $6.30 per share.
Published by Globes [online], Israel business news - www.globes.co.il - on January 23, 2008
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