Kardan Israel Ltd. (TASE:KRIS) and Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) are in talks to sell Teledata Networks Ltd. for $50 million in cash and securities to a company listed on a foreign stock exchange.
Kardan NV (TASE: KRNV;AEX:KARD) unit Kardan Israel wholly-owned subsidiary Kardan Communications Ltd. owns 45.53% (37.5% fully diluted) of Teledata Networks, and IDB Holding Corp. Ltd. (TASE:IDBH) investment arm Elron owns 21%.
The deal appears to be an excellent one for Kardan Israel, which acquired control of Teledata Networks in 2004 for less than the current asking price, although the exact amount in not known. If the deal goes through, the company will report a handsome capital gain.
The situation is otherwise for Elron. The company's financial report for 2008 gives Teledata Networks a value of almost $85 million.
Teledata Networks develops and installs access network solutions and products for telecommunications service providers. The company has customers in more than 50 countries worldwide.
Teledata's other shareholders are Infinity Private Equity and its Chinese affiliate CSVC-Infinity
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2010
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