Military optical equipment maker ITL Optronics Ltd. (TASE: ITL) today notified the Tel Aviv Stock Exchange (TASE) that US private equity firm Redstone Capital Corporation has withdrawn its offer to acquire the company. Instead, Redstone is offering to buy ITL's stake in US subsidiary Fraser Volpe LLC for $15 million in cash. The offer is valid through February 28.
ITL owns about 55% in Fraser Volpe.
ILT acquired a stake in Fraser Volpe 2007. Redstone's offer reflects a company value of $27 million for Fraser Volpe, which manufactures gyro-stabilized electro-optic systems. Fraser Volpe is headquartered in the Philadelphia suburb of Warminister. Redstone already owns a stake in the company.
Artillery and cookware manufacturer Soltam Systems Ltd. owns 64.45% of ITL. ITL's share opened today at NIS 7.08, giving a market cap of NIS 87.8 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2010
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