Aeronautics iwhich produces unmanned planess is sold to Rafael and businessman Avihai Stolero for NIS 850 million. This is a 70% premium on the company's current value on the stock exchange. Rafael and Stolero were granted exclusivity for six weeks until the transaction was approved at the general meeting of the Company. The three funds holding Aeronautics: Violeta, Genesis and KCPS will actually sell their 36% stake in the company.
Upon its final sale, Stolero and Rafael will hold 50% each, and will be delisted from the TASE.
The negotiations for the acquisition of Aeronautics by Stolero and Rafael began last summer, when the two put forward an offer to buy it for NIS 430 million. The board of directors of Aeronautics rejected the offer on the grounds that it was too low.
The proposal of Rafael and Stolero did not come up in a vacuum. In the background is a counter-proposal proposed by the IAI for the acquisition of Aeronautics at a company value of up to NIS 650 million. This proposal led to the current offer - based on a company value of NIS 850 million. Both Rafael and IAI are wholly owned by the government. This means that Frenkel and the other private shareholders, including the Viola Fund, will benefit from the competition between the two government companies and will cut a handsome coupon at the expense of the public fund.
On January 12, the company received a proposal to conduct negotiations for the purchase of all of the Company's shares by way of an inverted triangular merger, to be executed through a company jointly owned by Rafael and Avichai Stolero, and jointly and severally responsible for payment of the entire consideration at a company value of NIS 850 million Upon completion of the merger, the Company's shares will be delisted from trading on the Tel Aviv Stock Exchange and the Company will become a private company.
Aeronautics notified the Stock Exchange that any change in the final composition of the purchasers such that Rafael will cease to be a purchaser shall be subject to the Company's approval in its sole discretion. On the Tel Aviv Stock Exchange, Aeronautics shares are up more than 30%.