”Globes” has learned that Crystal, of the Formula Systems (Nasdaq: FORTY) group, yesterday submitted a tender offer to purchase to the shareholders of its subsidiary, Mainsoft, at $1.7 per share, reflecting a company value of approximately $50 million, fully diluted.
In the past, Mainsoft has raised capital in private placements, mostly from venture capital funds. Some of the funds invested in the company at $1.7 per share. The company held another round in April 1998 at $2.4 per share. Mainsoft converts Windows operating system software products to LINUX and UNIX systems. In December 1999, Crystal acquired 52% of Mainsoft for $10 million in cash at $1 per share. Crystal also received an option for another five million shares at $2.5 per share, subject to the achieving of targets by June 2001.
”Crystal is the controlling shareholder in Mainsoft, with an option to increase its holding,” said Formula president and Crystal chairman Gad Goldstein. “Mainsoft currently has about 30 minority shareholders, and it should be kept in mind that it is not a public company.
”This tender offer to purchase is not necessarily the last offer to the shareholders. Anyone preferring not to sell at this stage will remain with us. If he wishes, he can sell his shares to Crystal at a later date, possibly at a higher price,” Goldstein noted.
”The advantage of the current offer is that it is in cash. The next offer will be a share swap and will depend on the price of the share at the time of the offer,” Goldstein said.
Published by Israel's Business Arena on January 15, 2001