The board of directors of Israeli UAV manufacturer Aeronautics (TASE: ARCS) has rejected the NIS 430 million offer to acquire it, which was submitted last week by Rafael Advanced Defense Systems Ltd. and businessman Avichai Stolero. In explaining its reason for rejecting the offer, Aeronautics said that the bid was too low.
The price offered was a 10% premium on the market price last week but 60% below the price at which Yavne-based Aeronautics held its IPO a year ago.
Aeronautics, which develops and manufactures drones, is controlled by the KCPS and Viola funds. Rafael, a government defense company, which develops and manufactures advanced armament systems, including the Trophy tank defense system and the David's Sling and Iron Dome defense systems against missiles and rockets, is particularly interested in entering this niche market, among other things to increase it exports.
Aeronautics and Rafael already cooperate in several ventures and jointly own Controp, which produces surveillance systems such as thermal imaging cameras and electro optical infrared payloads.
Sources close to the talks describe the current impasse as "a natural crisis in negotiations" but find it difficult to assess whether the talks will end in a deal
Rafael told "Globes," "Rafael and its partner are considering their future steps."
Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2018
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