First Israel Mezzanine Investors Fund (FIMI), the largest shareholder in Ophir Optronics Ltd. (TASE:OPIR), is the big winner in its acquisition by Newport Corporation (Nasdaq: NEWP) for $230 million in cash, at $8.43 per share. FIMI acquired about 25% of Ophir Optronics, including options, for $25.3 million three years ago, and it stands to make $59.3 million in the sale. FIMI's total gains, including its share of Ophir Optronics' dividends over the past three years, amounts to $61 million.
FIMI bought five million Ophir Optronics shares in the summer of 2008 at $4.71 per share, and received options for 1.75 million additional shares exercisable at $5 per share. Later in 2008, FIMI bought more Ophir Optronics shares on the market, to reach its current stake at a total investment of $32 million.
FIMI invested $17 million of equity in Ophir Optronics, and financed the balance with bank loans. The sale of Ophir Optronics means that Ishay Davidi's private equity fund is making a 170% return on equity within three years.
The sale of Ophir Optronics is FIMI's fifth exit so far this year, following the sale of its stakes in Metro Motor Marketing Ltd., Orian CM Ltd., Merhav Ceramics and Building Materials Center Ltd. (TASE: MRHV) and Schneider Electrical Engineering Ltd. FIMI's gains this year to date total NIS 410 million on NIS 650 million in sales.
Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2011
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