Formula Vision Technologies Ltd. (TASE: FVT) will buy the public's shares in subsidiary Formula Telecom Solutions Ltd. (AIM:FTS) and delist the company from London’s Alternative Investment Market (AIM). Formula Vision will offer the public ₤0.16 per share for their 3,346,000 FTS shares, compared with today's price of ₤0.145, giving a market cap of ₤3.9 million. The offer amounts to ₤535,360.
The offer is 87% less than FTS's share price at its IPO, five and a half years ago.
Formula Vision owns 44.6% of FTS. The other shareholders participating in the offer are FTS founder and CEO Amos Sivan (14.8%), Moshe and Eli Shushan (10.7%), Dov and Gad Seluk (9.9%), Alon Nathan (4.92%), and Enrose Holdings Ltd. (4.92%). The public owns 10.2% of the company.
FTS develops customer relations management (CRM) and policy control solutions for communications and content service providers. The company's business has been in decline and it sold its US subsidiary Formula Telecom Solutions Inc. to Paetec Holding Corp. (Nasdaq: PAET) for $13 million in cash.
FTS chairman Dan Goldstein told "Globes", "FTS's business never really took off." He added, "After the sale of our North American business, we were only left with the Israeli operations, and the company's size does not justify being a public company. Trading in London does not really help us. There is little trading on the AIM - an understatement of the century. It's better to save the registration costs for other purposes."
Goldstein did not rule out a future listing on the Tel Aviv Stock Exchange (TASE) if and when the company's business justifies it.
FTS is the latest of many Israeli companies to announce that it is delisting from the AIM. Dori Media Group Ltd. (AIM:DMG) today announced that its shareholders approved last month's decision to delist the company.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2011
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