Israeli holding company Discount Investment Corporation Ltd. (TASE:DISI) has notified the Tel Aviv Stock Exchange (TASE) that it is in talks with a foreign venture capital to sell its full holdings in Elron Ventures (TASE: ELRN). Elron Ventures is a veteran Israeli venture capital fund that invests in early stage medical devices, cybersecurity and software companies.
Discount Investment reports that if any deal is signed, it will sell its 59.14% stake in Elron to the foreign venture capital fund for $48.5-$53.2 million, reflecting a company valuation of $82-$90 million.
Discount Investment, which is led by Zahi Nahmias through Mega Or Holdings (TASE: MGOR) and by Michael and Daniel Salkind's Elco (TASE: ELCO), reported that the range of the purchase value was based on the fact that there would not be a substantial decrease in the current cash levels of Elron and Its subsidiary RDC Rafael, and that the levels of debt and working capital would remain essentially unchanged in relation to their current situation. However, after Elron distributes any dividend, the valuation will be adjusted accordingly.
At the same time, Elron reported this morning that the court had approved its request to distribute a dividend of $35 million.
In December 2023, Discount Investment sold its 36% stake in telecom company Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) to Israeli private equity fund Fortissimo Capital at a company valuation of NIS 2.6 billion.
Published by Globes, Israel business news - en.globes.co.il - on May 5, 2024.
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