Hilan Tech Ltd. (TASE: HLTC) today confirmed that Eldav Investment Ltd. (TASE: ELDAV-L), controlled by CEO Rony Sternbach, confirmed media reports that is in talks to acquire the stake in the company held by chairman Ofer Hirchson. The talks are reportedly at a value of NIS 150 million, reflecting a company value of NIS 340 million for Hilan Tech, a 25% premium on yesterday's opening price. Ofer Hirchson is the son of former finance minister Avraham Hirchson.
Ofer Hirchson jointly controls Hilan Tech with CEO Avi Baum. Hirchson's company Sahar Technologies Holdings Ltd. directly owns 23.9% of Hilan Tech and Sahar also owns 50% of DCLBA Investments Ltd., which owns 47.65% of Hilan Tech. Baum has first refusal rights to the stake jointly held through DCLBA, although it is not clear that he will exercise these rights.
Hirchson will reportedly use the proceeds to repay loans to the banks, beginning with Bank Hapoalim (TASE: POLI).
Hilan Tech's share rose 12.8% by midday today to NIS 13.76, giving a market cap of over NIS 318 million. Eldav's share rose 5.1% to NIS 2.75, giving a market cap of NIS 100 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2010
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