Elbit Medical agrees to sell Insightec stake for $102m

Maurice Ferre Photo: PR

Elbit Medical is selling most of its stake in the Israeli MRI-guided ultrasound company.

Elbit Medical Technologies Ltd. (TASE: EMTC) announced this morning that it has agreed the sale of most of its stake in Insightec for $102 million at a company valuation of $702 million. The buyer was not named. Earlier this month, Elbit Medical had notified the Tel Aviv Stock Exchange (TASE) that it has signed a Memorandum of Understanding (MoU) on the sale of its shares to the buyer.

Insightec developed and markets a system for using focused MRI-guided ultrasound waves to destroy tissue, for treatment of non-Parkinson tremors, and to clear the "blood-brain blockage."

Completion of the deal is contingent on shareholders' approval, as a party at interest. Elbit Medical will use payment for the shares for the repayment of NIS 185 million on its Series C bonds. The balance of $38 million will be used to buy back the company's shares at an offer of $0.30.2 per share.

Elbit Medical Technologies also holds a stake in stem cell company Gamida Cell.

Insightec CEO is Maurice Ferre.

Published by Globes, Israel business news - en.globes.co.il - on December 26, 2019

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

Maurice Ferre Photo: PR
Maurice Ferre Photo: PR
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