Ilex Medical Ltd. (TASE:ILX) has acquired the 39.8% controlling interest in Medtechnica Ltd. (TASE: MEDI) from Eldav Investment Ltd. (TASE: ELDAV-L) for NIS 190 million, reflecting a company value of NIS 478 million. Ilex, which manufactures diagnostic kits, which are sold in niche markets in Russia and South Africa, is acquiring a veteran and established distributor of medical equipment with a range of activities in Israel and small holdings in several start-ups.
Two months ago, Ilex CEO Moshe Ben Shaul told "Globes", "We have NIS 200 million available for acquisitions." Israel Financial Levers Ltd. (TASE:LVR) CEO Daniel Vaknin heard the remark and brokered a deal.
Eldav acquired the controlling interest in Medtechnica for NIS 117 million three years ago, and subsequently injected an additional NIS 20 million into the company. Eldav's managers apparently also heard Ben Shaul's remarks and saw the opportunity for a deal.
Medtechnica distributed NIS 64 million in dividends since Eldav acquired it. Eldav has made a capital gain of NIS 114 million on the sale, plus NIS 5 million in management fees, for a total of NIS 119 million, giving a return on investment of NIS 150%.
Ilex Medical's share price rose 3.2% by mid-afternoon today to NIS 38.50, giving a market cap of NIS 374 million. Medtechnica's share price rose 4.2% to NIS 28.39, giving a market cap of NIS 400 million, and Eldav's share price jumped 12.6% to NIS 4.41, giving a market cap of NIS 160 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 16, 2011
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