Defense Ministry suspends Aeronautics CEO export permit

Amos Mathan Photo: Eyal Izhar

Three executives including CEO Amos Mathan cannot deal in marketing and exports until their case is decided.

The Ministry of Defense notified Aeronautics Ltd. (TASE:ARCS) of its intention to temporarily suspend the defense export permits of senior Aeronautics executives, Aeronautics today notified the Tel Aviv Stock Exchange (TASE).

The suspended executives include CEO Amos Mathan, the company's VP business division, and another executive.

The Ministry of Defense's action means that the three executives cannot deal with foreign parties in marketing and exports until a legal ruling is rendered in their case.

Aeronautics said that the decision to suspend Mathan and the two other executives was subject to a hearing. The company added that the Ministry of Defense's action followed suspension of Aeronautics's export and marketing license for its K1 Orbiter unmanned aerial vehicles (UAVs) with respect to an important customer.

The police are investigating the case, on which the court has imposed a gag order.

The Ministry of Defense today confirmed that it had summoned Aeronautics executives to a hearing on the suspension of their defense export permits.

Aeronautics is controlled by the KCPS, Viola, and Bereshit funds while businessperson Aaron Frenkel has acquired a 20% stake in recent weeks. The company is up for sale, and Rafael Advanced Defense Systems Ltd. and businessperson Avichai Stolero are negotiating to acquire it for NIS 850 million. Rafael and Stolero made a high bid for the company after Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) tried to acquire Aeronautics.

Published by Globes, Israel business news - en.globes.co.il - on January 27, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Amos Mathan Photo: Eyal Izhar
Amos Mathan Photo: Eyal Izhar
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018