Infinity Private Equity is investing NIS 20 million in incubator company Maayan Ventures Ltd. (TASE:MAYN). The investment is at NIS 1 per share, a 5.4% premium on yesterday's close.
In addition, Maayan will allot to Infinity 11 million options at a strike price of NIS 0.875 per share, a 7.8% discount on yesterday's close. The options vest in five years, and if exercised, will inject an additional NIS 10 million into Maayan.
Infinity is a party at interest in Maayan with a 3.4% stake. The investment will boost the stake to 12.8%.
Part of the capital is coming from China. The Infinity I-China Fund invests in Israeli high-tech companies and helps them do business in China. The fund has invested in five companies to date, including Shellcase (acquired by Tessera Technologies Inc. (Nasdaq: TSRA) in 2005), and Teledata Networks Ltd. This is the fund's first investment in an incubator, which invests in early stage start-ups.
Maayan chairman and Infinity managing partner Amir Gal-Or told "Globes", "The investment is both financial and strategic. Infinity will help Maayan's portfolio companies with direct access to the Chinese market. We're already helping four Maayan companies in the electricity, Internet, and medical fields, in China. We have 50 people in China who help Israeli companies."
Gal-Or said that the investment was "a historic event at the national level." He added, "Bringing money from China to Israel is a milestone, and fits in with the government's policy to attract Chinese investment to Israel."
Maayan's share price fell 1.6% today to NIS 0.93, giving a market cap of NIS 140 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2010
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