The "Ma'ariv" daily newspaper has reported that Tesnet Software Examining, controlled by the Amanet group, will be issued on the Tel Aviv stock exchange (TASE) over the next two months. The company will raise $15 million at a company value of $50 million. The issue was originally slated to take place on a European stock exchange, but due to various considerations, including an improvement in issue conditions in Israel, it was decided to issue on the TASE. It has been learned that Leader of the Shrem-Fudim-Kelner group will underwrite the issue.
Tesnet, the leading company in Israel in the field of automatic software examining, provides solutions for software quality control in the fields of banking and Internet, among others. In March 1999, Crystal of the Formula group acquired 32% of Tesnet's shares for $1.25 million, with an option for an additional 19%, if Tesnet is not issued by July 2002.
Formula will now not be able to exercise its option. It will, however, record a profit from the issue, as will Amanet, which holds 51% of Tesnet's shares.
The sum raised from the issue will be used to increase the company's international sales force and for acquiring overseas competitors, as well as for increasing company activity in Israel.
Published by Israel's Business Arena on January 16, 2000