Opto-electronics equipment maker Star Night Technologies Ltd. (TASE:STNT-M ) is continuing to make announcements concerning the expansion of its business, after being taken off the list of companies that fail to meet Tel Aviv Stock Exchange (TASE) trading criteria on May 9, and announcing a strategic cooperation agreement with Israel Aircraft Industries Ltd. (IAI). Star Night today announced that was negotiating to acquire control of Aryt Industries Ltd. (TASE:ARYT), which will reportedly significantly boost revenue.
Star Night, controlled by chairman Mordechai Saliman, today notified the TASE that it signed an agreement with Aryt Industries and its controlling shareholders, chairman Shmuel Meersohn and co-CEO Ran Eckhaus, yesterday. Under the agreement, Star Night will be allocated an 80% controlling interest in Aryt Industries in exchange for the transfer of all of Star Night's holdings in two subsidiaries, Night Light and New Noga. Star Night will also make an investment in Aryt Industries on the basis of a prospectus for the raising of NIS 60 million in Star Night convertible bonds, which can be converted into Aryt Industries' shares.
Star Night and Aryt Industries will also pay $1 million to Meersohn and Eckhaus over 18 months as a consultancy fee. Aryt Industries will pay 70% of the sum, and Star Night 30%.
Star Night manufactures and markets electro-optical and starlight night vision scopes (SLS) components and systems. The company has production facilities in Israel and the US.
The estimated timetable for closing the deal is three weeks.
Star Night posted a net profit of NIS 380,000 on NIS 5.55 million in revenue for the first quarter of 2005, compared with a net loss of NIS 1 million on NIS 2.38 million for the corresponding quarter of 2004.
Published by Globes [online], Israel business news - www.globes.co.il - on May 24, 2005