Cash distress and low prices for Tel Aviv Stock Exchange-listed biomed companies has made it possible for private investors and small institutions to acquire quite large stakes in them. Dental endoscope developer Sialo Technology Israel Ltd. (TASE: SALO) has allocated 16% of its shares to IRM Medical Centers Holdings Ltd. for NIS 2.25 million.
IRM bought 2.57 million Sialo shares at NIS 0.89 per share, reflecting a company value of NIS 11.84 million. The price tag gave a 30% discount on Sialo's closing price of NIS 1.20 yesterday. The share rose 5.3% today to NIS 1.26, giving a market cap of NIS 16.8 million.
Sialo CEO Itsik Hening said, "Our share price was NIS 0.60 when we began the negotiations, so in retrospect it seems that the investor got a good deal."
IRM provides dental insurance services for leading insurance companies through 200 dental clinics in Israel with which it has agreements. IRM owns some of these clinics. IRM will also conduct a trial of Sialo's endoscope on 250 patients as part of the deal.
Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2009
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