Elbit Systems signed an agreement to sell control of Ashkelon to Yishai Davidi's Pimi Fund for NIS 285 million

Elbit Systems announced today that it has signed an agreement to sell control of Ashot-Ashkelon to Yishai Davidi's Pimi Fund for NIS 285 million. Elbit Systems, controlled by Mickey Federman, will sell its holdings in Ashkelon (84.98%) at a value of NIS 335 million. Ashkelon is traded at a value of NIS 314 million, and the value of Elbit Systems' holdings in the company is approximately NIS 271.2 million.
Shares of Azot have soared by about 30% since it was first announced in early September about Davidi's intention to acquire the company. The deal to make a deal was revealed after the company's workers' committee threatened to go on strike, following Davidi's visit to the factory. The purchase is subject to various conditions for completion, including the receipt of certain regulatory approvals.
Eshet Ashkelon is engaged in the military field in the development, production and marketing of main relays, final drives, suspension systems for armored combat vehicles and more. In the civilian field, Doot develops, manufactures and markets transmission and propulsion systems; Manufactures waves for jet engines, relays and aerial connectors for aircraft and jet engines; And develops and manufactures balance weights for aircraft.
The corona crisis hit the company following the weakening of the global aviation sector. Eisot reported that the crisis adversely affected the financial strength of customers in the aviation sector, some of whom informed it of the deployment of existing bookings for longer periods, and in exceptional cases even the cancellation of bookings. Editing estimates that in the coming years the company's revenues in the aviation sector are expected to decrease significantly, as a direct result of the corona, compared to revenues in 2019, which amounted to NIS 86 million.
Bezalel (Muddy) Machlis, President and CEO of Elbit Systems, said that “this sale is in line with our strategy to focus on the core areas of our business. We look forward to continuing our joint work with both Esav and Phimie. "
Yishai Davidi, CEO and founder of the Pimi Fund, said: "The investment in Ashkelon's investments is a continuation of Pimi's strategy to acquire control of companies with high growth potential. "Phimie, together with the company's management, led by Eli Damari, and its dedicated employees, intends to realize the company's significant growth potential, expand its global deployment and contribute our knowledge and experience in improving companies."