Viola Private Equity to sell Amiad stake

Viola Private Equity owns 19.5% of Amiad Water, which has a market cap of £63 million, making it the company's second largest shareholder.

Sources inform ''Globes'' that Viola Private Equity is seeking to sell its stake in Amiad Water Systems Ltd. (AIM:AFS) (formerly Amiad Filtration Systems). Based at Kibbutz Amiad in the Upper Galilee, it is the only kibbutz company listed on London’s Alternative Investment Market (AIM).

Viola Private Equity owns 19.5% of Amiad Water, which has a market cap of £63 million, making it the company's second largest shareholder. The stake is currently worth about £12 million ($20 million).

Amiad Water produces water filtration systems to make sewage suitable for agricultural use, including through drip irrigation systems at greenhouses. The company also makes water-cooled systems for turbines, desalination systems, and filters for oil rigs. In October, it announced that 2013 was a transition year, in which business slowed. It forecasts a net profit of $4-6 million on $115-120 million revenue for the year, compared with a net profit of $8.1 million on $130.8 million in revenue in 2012.

Viola Private Equity invested in Amiad Water in 2009, buying the stake of Iceland's Atorka Group, which had cash flow problems for $9 million. It paid £1.40 per share, compared with Amiad Water's closing price on Friday of £2.82. The doubling of the share price may be reason enough to sell the stake.

Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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