Israel Aerospace in talks to invest in Aeronautics

Aeronautics UAV Photo: PR

IAI notified the TASE that it is in initial non-binding talks about an investment in Aeronautics.

Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) is considering an investment in Aeronautics Ltd. (TASE:ARCS). Initial non-binding talks about an investment are taking place, IAI notified the Tel Aviv Stock Exchange (TASE) today. In its notice to the TASE, IAI stated, "At this stage, there is no certainty about reaching an agreement between the parties, its price, date, or other terms."

Aeronautics also announced that one of the parties with which it was negotiating a sale of its shares was IAI, adding that it was negotiating with another party for the sale of its holdings in electro-optical company Controp, which it holds jointly with Rafael Advanced Defense Systems Ltd..

It was revealed yesterday that businessperson Aharon Frenkel had bought the shares in Aeronautics owned by The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), plus additional shares, giving him a 17% stake in Aeronautics and making him the largest shareholder in the company. Other Aeronautics shareholders include the KCPS, Bereshit, and Viola funds.

Rafael and businessperson Avichai Stolero made a NIS 430 million offer to purchase for Aeronautics in recent months, but Aeronautics's board of directors rejected it on the grounds that the offer was too low. Aeronautics held its IPO six months ago at a NIS 1 billion company value.

It was also revealed yesterday that the Israel Securities Authority had summoned executives at Aeronautics for questioning in an affair under investigation, which is under a gag order. The police investigated another case concerning the company concerning violations of the Defense Export Control Law, and gave its findings to the State Attorney's Office for further handling. A gag order has also been issued in this case.

Published by Globes, Israel business news - en.globes.co.il - on January 1, 2019

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

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Aeronautics UAV Photo: PR
Aeronautics UAV Photo: PR
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