Is FIMI Opportunity Funds about to cash in on security company Magal Security Systems Ltd. (Nasdaq: MAGS; TASE: MAGS)? Sources inform "Globes" that UAV company Aeronautics, owned by Rafael Advanced Defense Systems Ltd. and Avichai Stolero, is in talks on acquiring Magal's projects division. The potential deal is in the hundreds of millions of shekels.
A spokesperson for Magal said that the company would not respond to rumors. No response was forthcoming from FIMI. A spokesperson for Aeronautics said that the company constantly examined opportunities for expanding its business, and that it was not wont to provide details of such opportunities. The spokesperson also said that as a privately-held company, Aeronautics had no obligation to report potential deals.
Magal, headed by Dror Sharon, has two divisions: the Magal Integrated Solutions projects division, which is mainly active in Israel, and carries out projects as a systems integrator, and is responsible for over half Magal's revenue; and the Senstar division which is based in Canada, and produces software, video management systems, and analytics. Magal is traded on Nasdaq at a market cap of $114 million. The projects division, in which Aeronautics is interested, has veeb run since the beginning of this year by Arnon Bram, who joined Magal after serving in a senior management position at Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT). This division specializes in securing sensitive installations, borders, seaports and airports.
Just as few days ago, Magal announced a large dividend distribution, amounting to $25 million, and in response its share price jumped. Most of the dividend will go to FIMI, headed by Ishay Davidi, which is the largest shareholder in the company, with a 46% stake. Six months ago, FIMI offered to buy the public's shares in Magal, but the take-up was insufficient.
Published by Globes, Israel business news - en.globes.co.il - on December 10, 2020
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