Babylon Ltd. (TASE:BBYL) today announced that, on Thursday, it filed a request with the US Securities and Exchange Commission (SEC) to withdraw the draft prospectus for a public offering that it filed on November 4, 2012.
Babylon withdrew the prospectus because "at this time, the company is investing efforts in the merger negotiations with ironSource Ltd."
In mid-August 2013, "Globes" reported that Babylon and ironSource were in the preliminary stages of merger talks. The parties reportedly plan to sign and announce a merger agreement in October and to close the deal by the end of this year.
Sources close to the matter say that the parties plan an aggregate valuation of $1 billion, which will apparently result in the merged company joining the Tel Aviv 25 Index at its semiannual update in 2014. However, it should be noted that the merger ratio between Babylon and ironSource is still not set, and mainly depends on the will, or the lack of will, by one of the parties to sell part of its holdings, which will accordingly increase or decrease its stake in the other.
Published by Globes [online], Israel business news - www.globes-online.com - on September 22, 2013
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