Nochi Dankner has put another company up for sale: fittings and valves maker Ham-Let (Israel-Canada) Ltd. (TASE: HAML). The sale comes less than a week after IDB Holding Corp. Ltd. (TASE:IDBH) holding company Discount Investment Corporation (TASE: DISI) sold its 75.5% stake in industrial gases and applications, systems manufacturer Maxima Air Separation Center Ltd. to George Horesh's Ronin Investment Management Co. Ltd. for NIS 155 million.
Sources inform ''Globes'' that Discount Investment has approached several companies and investment funds to interest them in its 60% stake in Ham-Let at a substantial premium. Fortissimo Capital responded, but no deal was reached due to the difference between the asking price and the offer. Discount Investment is in talks with other companies.
Discount Investment acquired control of Ham-Let in April 2009, when it acquired 14% of the company from its founders, Dan and Shmuel Topaz, for $9.5 million, reflecting a company value of $70 million, a 92% premium on the market cap at the time. The company's current market cap is $96 million, giving Discount Investment's stake a value of $58 million.
Ham-Let posted $98 million revenue in 2011, 20% more than in 2010, and its net profit rose 56% to $16 million. However, its first quarter revenue fell 14.5%, compared with the corresponding quarter, to $22.6 million, and its net profit fell 57% to $2.1 million, due to a drop in demand from semiconductor foundries. Most of the company's products are exported.
Discount Investment's spokesman said, "From time to time, we receive offers to acquire Ham-Let. Beyond that, there are no negotiations on the matter."
Ham-Let's share price was unchanged at NIS 27.90 in morning trading, giving a market cap of NIS 386 million. Discount Investment's share price rose 3.1% to NIS 8.50, giving a market cap of NIS 724 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 6, 2012
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