Military optical systems maker ITL Optronics Ltd. (TASE: ITL) today disclosed the amount of the takeover offer made last week: $35 million. The potential buyer, whose name ITL has not disclosed, estimates the company's debts at $13 million, which it will assume as part of a deal, leaving a payment of $22 million.
ITL's investors were apparently underwhelmed by the offerITL's share fell 6.1% today to NIS 6.45, giving a market cap of NIS 85 million (about $22 million). The share jumped 25.8% on Wednesday, when the company announced the takeover offer, and a further 9.2% on Thursday.
The boards of ITL and its parent companies, artillery and kitchenware maker Soltam Systems Ltd. and Mikal Ltd., have until Thursday to decide whether to accept the offer. If they accept it, the buyer will begin a 60-day due diligence.
In addition to ITL's operating debt, the company owes Soltam and Mikal $6.8 million. If a takeover deal is reached, Mikal will get back its owner's loan to ITL, which will improve the latter's financial position.
Soltam owns 64.45% of ITL and Mikal owns 20.36%. ITL develops and manufactures optical equipment, especially night-vision equipment for the military, especially the infantry and special forces.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2009
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