Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) receiver Yoav Kfir has filed an urgent motion with the Tel Aviv District Court to approve a revised offer from Valley Telecom Ltd. to acquire the company and its assets for a minimum of NIS 20.75 million ($5.8 million).
Following Valley Telecom's first offer, other bidders filed revised offers, and Kfir held a further round of talks with them. In response, Valley Telecom raised its offer for Alvarion's assets, and if a debt settlement is approved, for at least 75% of the company. Valley Telecom's revised offer includes a payment of NIS 12 million in two installments by September 30, a minimum payment of NIS 6.25 million in four installments between November 30, 2013 and May 30, 2014; and payment of NIS 2.5 million for Alvarion's patents. It also offers to pay the receiver half of the proceeds of any future sale of these patents, and payments from the sale of Alvarion's assets, inventory, and accounts receivables over two years from the court approval of the offer.
Valley Telecom also offers to assume the management and financing of Alvarion's operations from September 15, and proposes that the receiver receive 15% of the company, and to dilute the holdings of its current shareholders to 10%. Valley Telecom deposited a NIS 1.8 million guarantee against its offer.
Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2013
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