A unit of defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has issued a cash tender offer to buy all the public's shares in its ITL Optronics Ltd. (TASE: ITL) subsidiary.
The offer, to be carried out through its Elbit Security Systems Ltd. (Elsec) subsidiary, is for 12.15% of ITL shares. Elbit, through Elsec, already owns the other 87.85% of ITL's outstanding share capital is currently held by Elsec (81.53% on fully diluted basis).
The tender offer is through February 8, 2011 and is for the price of NIS 12.50 (about $3.52) per share, for a total consideration of approximately NIS 18.8 million (approximately $5.3 million).
ITL shares closed yesterday at NIS 11.87, and jumped 7.6% this morning to NIS 12.77.
The tender offer will not be implemented if holders representing 5% or more of the total outstanding ITL ordinary shares do not accept the tender offer. However, Elsec already has irrevocable consents from holders of approximately 8.85% of ITL's shares (8.21% on fully diluted basis) to accept the offer.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2011
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