Roshtov Software Industries Ltd. (TASE: RSTV-L) has generated few headlines over the years, but has something that many TASE-listed biomed companies only dream of - steady revenue and profits. However, the company has not grown, trading in the share is negligible, notices to the TASE are sporadic, and the share price does not move.
Roshtov's controlling shareholders apparently believe that it will do better as a private company. Founder and CEO Hanan Shahaf, who owns 39.66% of the company and chairman Dr. Allon Zuker, who owns 37.89%, have made an offer to purchase the shares of minority shareholders. Most of the shareholders today apparently accepted the offer.
The offer to purchase was the third in a month, after Shahaf and Zuker were twice compelled to raise their offer, after the other shareholders turned them down.
Shahaf said, "We offered the shareholders a good price, a level that it never traded at. This is an opportunity for a shareholder stuck with illiquid stock."
Roshtov develops a clinics management software solution, which it provides to Israel's four healthcare organizations, although only two of them provide the bulk of the company's revenue.
Roshtov's share price was unchanged today at NIS 5.03, giving a market cap of NIS 80 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2010
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