Satellite Technology News

powered by google

Satellite Spotlight:  

Satellite Technology RSS Feed

TMCNet:  FIMI nears control of Gilat

[November 13, 2012]

FIMI nears control of Gilat

Nov 13, 2012 (Globes - McClatchy-Tribune Information Services via COMTEX) -- Several months after acquiring its first shares in Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT), First Israel Mezzanine Investors Fund (FIMI), controlled by CEO Yishai Davidi, last night acquired a further 1.65 million shares (about 4 percent of the company's equity) at a price of $4.75 per share. The deal was worth $7.8 million (about NIS 30 million) and FIMI now has a 14.6 percent stake in the company.

FIMI acquired the shares from a number of sources, including businessman Meir Shamir, who sold $2 million worth of shares, and whose stake now falls to about 4 percent. He is expected to join forces with FIMI.

So far, FIMI has invested about $23 million in Gilat's shares, including purchases from Menorah Mivtachim Holdings Ltd. (TASE: MORA) several months ago and yesterday's acquisition. The average price paid for the shares is $3.89 per share. Since FIMI acquired shares from Menorah, Gilat's share price has jumped 43 percent, and its price was $4.99 per share at close of trading on Nasdaq yesterday.

This latest acquisition brings FIMI closer to York Fund's 19.6 percent stake, the largest shareholding in the company. York became an investor in Gilat in June 2005 when it bought Gilat's debt to Bank Hapoalim (TASE: POLI) and received an option to convert it to shares.

In September 2006, York converted the debt to shares for $71.4 million at about 35 percent above Gilat's current share price. Since then, York has sold some of its holdings. In Gilat's secondary offering at the end of 2006 it sold $20 million worth of shares at $8.50 per share, 70 percent above the current price.

Buying from York or linking up with it In contrast to FIMI, which is a private equity fund, which acquires control of companies and is actively involved in management, York is a hedge fund with purely financial investments. FIMI strives to be the controlling shareholder in companies in which it invests, and at this stage it is not yet clear if it will buy shares from York or join forces so that together the two funds will control Gilat.

___ (c)2012 the Globes (Tel Aviv, Israel) Visit the Globes (Tel Aviv, Israel) at fid=942 Distributed by MCT Information Services

[ Satellite Spotlight's Homepage ]

blog comments powered by Disqus

FREE Satellite eNewsletter

Subscribe to our free weekly Satellite Spotlight eNewsletter!

Get the latest expert news, reviews & resources. Tailored specifically for Satellite Technology and Communications.

Satellite Technology White Papers

Innovative Features Mean Major Savings for Cellular Operators Using Satellite Backhaul
With the rising cost of satellite bandwidth and the need for more of it to support an ever increasing number of voice, data and now video services, operators must seek ways to reduce both their hardware investment costs and operating expenses, especially when fierce competition forces them to provide these new services without raising their rates.

Satellite Technology Features