Rafael signs cooperation agreement with Aeronautics

Yedidya Yaari Photo: Eyal Izhar

The two companies will develop and manufacture advanced drones based on Aeronautics's Orbiter.

Although the attempt by government company Rafael Advanced Defense Systems Ltd. and businessperson Avichai Stolero to acquire unmanned aerial vehicle (UAV) company Aeronautics Ltd. (TASE:ARCS) failed, Aeronautics today announced that it had signed a cooperation agreement with Rafael. The two companies will develop and manufacture advanced drones (UAV systems) based on the Orbiter family of UAVs. The agreement involves joint marketing and sales of the new systems, first in Israel and later also overseas, subject to obtaining the required authorization.

The five-year agreement gives Rafael the right to cancel it in the event of changes in Aeronautics's ownership structure. Aeronautics reported to the Tel Aviv Stock Exchange (TASE) that the new agreement constitutes anchoring and extension of an existing agreement in principle signed 30 months ago.

Aeronautics chairperson Vice Admiral (res.) Yedidia Yaari is a former CEO of Rafael. The controlling shareholders in Aeronautics are businessperson Aharon Frenkel and the KCPS, Viola, and Bereshit funds.

Rafael and Stolero offering to acquire Aeronautics for NIS 430 million, but the offer was rejected as too low. Aeronautics and Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) yesterday announced that they were in preliminary talks for an investment by IAI in Aeronautics.

Sources in Rafael told "Globes," "This measure is designed above all for the benefit of Israel's defense, but it will also help the two companies with overseas customers. The measure will enable us to bring Rafael's assets in communications, closing circles of fire, etc., thereby enhancing operational capabilities."

Published by Globes, Israel business news - en.globes.co.il - on January 2, 2019

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

Yedidya Yaari Photo: Eyal Izhar
Yedidya Yaari Photo: Eyal Izhar
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