FIMI Opportunity Funds, a private investment fund led by Ishay Davidi, reported today that it had increased its holding in Amiad Water Systems and become the controlling shareholder in the company, formerly controlled by Kibbutz Amiad.
The agreement between FIMI and the kibbutz increases FIMI's stake in Amiad Water Systems from 18% to 46% in return for an investment totaling $36 million.
FIMI reported the signing of a binding agreement with Kibbutz Amiad in which the fund will invest $22 million in Amiad Water Systems while acquiring 5% more of the company's shares for $2.6 million. The deal is at a share price of £2.30, reflecting a company valuation of £52 million ($67 million), before money.
The price constitutes a 13% discount on the £2.65 price at which Amiad Water's share was traded today on the AIM exchange (equivalent to a £60 million ($78 million) valuation). The deal reduces Kibbutz Amiad's holding in the company from 48.5% to 33%.
The deal with the kibbutz is designed to give FIMI control of the water filters company, after FIMI built a strong investment position in Amiad Water in the past 18 months.
Kibbutz Beit Zera to also sell shares
In July 2018, FIMI surprised investors by announcing that it had purchased 9% of Amiad Water's shares for $5.3 million. That deal signaled FIMI's aim of attaining future control of the company, which had been controlled by Kibbutz Amiad since it was founded.
FIMI increased its holding in May 2019 by paying Bermad Industries $6 million for 9% of Amiad Water's shares.
Kibbutz Beit Zera currently holds 4.5% of Amiad Water's shares, and is also likely to sell its shares to FIMI after the deal with Kibbutz Amiad is completed. FIMI said that completion of the current deal was contingent on obtaining regulatory authorization from the AIM Stock Exchange in London.
Amiad Water offered its shares on AIM in 2005.
Amiad Water develops, manufactures, and sells water filtration systems for the industrial and municipal sectors; for irrigation, oil and gas uses; and for home use. The company specializes in technology for filters that automatically clean themselves. It is the world leaders in these fields.
Amiad Water, founded in 1962, has over 700 employees around the world. Its CEO is Dori Ivzori, who was appointed to the position in September 2016, after having previously been managing director (CEO and chairman) of Tama Plastic Industry, General Partnership.
Published by Globes, Israel business news - en.globes.co.il - on November 25, 2019
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