Automatic vehicle location solutions developer and roadside assistance services provider Pointer Telocation Systems Ltd. (Nasdaq:PNTR; TASE:PNTR) Israeli subsidiary Shagrir Ltd. has acquired 51% of Car2Go Ltd., which provides carsharing services in the metropolitan Tel Aviv area. Shagrir will provide Car2Go with an owner's loan of up to NIS 6 million in exchange for an equity stake in the company.
Pointer chairman Yossi Ben-Shalom said, "Shagrir is the major player in the car services industry in Israel and aims to increase its operations into new fields in Israel and to further penetrate into new countries. Car sharing, which is an alternative for car ownership and for taxi services, is rapidly spreading in urban areas worldwide. Car sharing significantly contributes to the environment and saves costs and time to the large urban population. The investment in this essential service is based on our strategy of increasing our service and subscribers base."
Ben-Shalom added, "Pointer will continue seeking interesting investment opportunities aimed at expanding its business in Israel and abroad."
Pointer will publish its financial report for the first quarter of 2009 on Tuesday.
Pointer closed at $3.39 on Nasdaq on Friday. The share rose 0.9% by midday on the TASE today to NIS 14.30.
Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009