DBSI sells 9% stake in RADA to Israeli institutions

Dov Sella  / Photo: Shlomi Yosef

DBSI remains with a 7% stake after selling 3.9 million shares for $35 million, ten times what it paid for them in 2016.

Herzliya-based DBSI Investments has informed Israeli defense and aerospace company RADA Electronic Industries Ltd. (Nasdaq: RADA) that it has agreed to sell 3.9 million shares (a 9% stake) to leading Israeli institutional investors. Following the completion of the sale of such shares, DBSI’s interest in RADA will stand at 2.8 million shares, a 7% stake in the company.

DBSI’s chairman and RADA chairman Yossi Ben Shalom said, "DBSI remains committed to its holdings in Rada and we feel that we have the correct interest in Rada relative to our size. We presently intend to remain with our current position in RADA as we still see significant future upside potential in RADA, and I intend to continue to act as Chairman of the Board."

He added, "As a family office, DBSI balances its portfolio from time to time and may adjust its holdings in its investments, given an opportunity. In this particular case, we were approached by leading Israeli institutional investors who were looking to purchase a meaningful stake in Rada. Like us, they saw in Rada the potential for long term value creation. I believe these investors are of the highest quality in Israel with long-term views and with a good understanding of RADA’s business and its potential."

The deal was led by Barak Capital at 9% per share for a total of $35 million for the stake.

DBSI acquired its stake in Rada in April 2016 and since then the share price has risen tenfold. The share price fell 4.6% on Nasdaq yesterday, giving a market cap of $414 million.

Two weeks ago RADA said it expects full year 2021 revenue of over $120 million, 11% above the analysts' estimates, and 60% above expected 2019 revenue of $75 million. RADA expects sequential quarter on quarter revenue and profitability growth throughout 2021.

RADA's CEO is Dov Sella.

Published by Globes, Israel business news - en.globes.co.il - on January 7, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Dov Sella  / Photo: Shlomi Yosef
Dov Sella / Photo: Shlomi Yosef
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