Dexxon decides to stay on in Medigus

The controlling shareholder withdrew its offer to sell its stake in the esophageal endoscope maker.

Dexxon CEO Dan Oren has retracted his offer sell Dexxon's controlling stake in esophageal endoscope maker Medigus Ltd. (TASE:MDGS). Dexxon Technologies (2005) Ltd. had previously announced that it would quit Medigus after the company's other controlling shareholders approved the submission of a draft prospectus for an offering, rather than accept an investment offer by Dexxon.

Two weeks ago, Dexxon announced a unilateral offer to sell its 10.74% stake in Medigus to the other controlling shareholders at NIS 2 per share, a 25% premium on Medigus's share price at the time. Dexxon set a rigid deadline for responses. The other controlling shareholders include Medigus chairman Yair Rabinowitch, Medigus CEO Elazar Sonnenschein, Minelu Sonnenschein, Aviel Roy-Shapira, and patent law firm Luzzatto & Luzzatto partners Kfir and Esther Luzzatto.

Oren had said at the time that his investment offer had been torpedoed by a dominant party at interest.

Elazar Sonnenschein said in response that while he respected Oren, "It is not clear what he is talking about." He added that Medigus's shareholders would probably accept Dexxon's offer.

In a notice to the TASE, Medigus said that the parties had reached an agreement that kept Dexxon as a controlling shareholder in the company.

Sonnenschein said, "The partnership set up with Dexxon a decade ago has proven itself. Dan Oren's announcement was welcomed by the controlling shareholders with the clear intention of continuing the cooperation."

Medigus's share fell 0.4% in morning trading today to NIS 2.40, giving a market cap of NIS 142 million.

Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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