Nexus Telocation Systems (Nasdaq: NXUS.OB), provider of stolen vehicle retrieval services, announced that it has completed the purchase of Shagrir Towing Services Ltd. and Shagrir (1985) Ltd., by Nexus' subsidiary Shagrir Vehicle Services Ltd. (previously known as Pointer (Eden Telecom) Ltd.), for approximately NIS 200 million.
NIS 100 million was funded by Bank Hapoalim (LSE: BKHD; TASE: POLI), NIS 40 million was funded by a loan provided by Shagrir and approximately NIS 50 million was funded by a group of investors lead by Gandyr Investments Ltd. and Egged Holdings Ltd.
In addition Nexus invested an amount of NIS 4,550,000 in the share capital of its subsidiary and provided it with a loan of NIS 5,000,000.
Nexus granted to Bank Hapoalim a warrant to purchase up to 10,000,000 ordinary shares of Nexus, at a price per share of $0.18; and granted to Shagrir a warrant to purchase up to 25,000,000 ordinary shares of Nexus, at a price per share of $0.18.
Part of the loans provided by the investors led by Gandyr Investments Ltd. and Egged Holdings Ltd. may be converted into shares of Nexus and/or its subsidiary, Shagrir Vehicle Services Ltd.
Shagrir is one of the leading companies in Israel in the field of automobile repair services and towing services. Shagrir has approximately 750,000 subscribers throughout Israel and its fleet of vehicles include approximately 130 service cars, mobile garages and towing vehicles.
Nexus further announced that it had completed a round of financing of $6 million ($1 million of which was invested by DBSI Investments Ltd., the controlling shareholder of Nexus), at a price per share of $0.084. Under the terms of the investment agreements the investors were issued warrants to purchase additional shares of Nexus up to an amount equal to 22% of their investment, at the same price per share.
Published by Globes [online], Israel business news - www.globes.co.il - on Monday, February 28, 2005