Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) wholly-owned subsidiary, Elbit Systems Land and C4I - Tadiran Ltd., will acquire Shiron Satellite Communications (1996) Ltd. from Polar Communications Ltd. (TASE: PLRC) and other shareholders for $16 million.
Shareholders owning more than 90% of Shiron shares accepted the offer to purchase. Polar Communications owns 46.6% of Shiron through a subsidiary, and expects to report a pretax gain of NIS 20 million on its share of the deal.
Shiron develops broadband communication solutions for the interactive multimedia broadband satellite market. The company's InterSKY satellite communications system provides broadband satellite services to remote locations. Elbit Systems says that the technology, well proven in the commercial market, should be synergetic to Tadiran's military communication technology and products.
The final cost figure may change depending on Shiron's capital balance and other ocnsiderations.
Elbit Systems' share fell 1.5% on Nasdaq yesterday to $46.01. The share fell 2% on the TASE by mid-afternoon to NIS 175.60. Polar Communications, a subsidiary of Shrem Fudim Group Ltd. (TASE: SFG), rose 6% to NIS 0.53.
Published by Globes [online], Israel business news - www.globes-online.com - on January 8, 2009
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