The controlling shareholders in ProCognia (Israel) Ltd. (TASE:PRCG), Tzahi Sultan and Nir Peleg are planning to take the failed drug development company into the solar energy business. Sources inform ''Globes'' that Peleg and Sultan, who control the company through a 29% stake held by Soleg Development Ltd., plan to pour into the stock market shell Soleg's solar energy business, at a company value of NIS 130 million. To carry out this parties at interest transaction, they will need the support of ProCognia's public shareholders.
At the same time, Peleg and Sultan are about to acquire solar energy company Sun Team Group Ltd. (TASE: SNTG) for NIS 70 million. When the process is completed, ProCognia, which has a market cap of NIS 3 million, will have assets worth NIS 200 million. On Wednesday, ProCognia published an offer to purchase Sun Team.
Sun Team, which builds and operates renewable energy facilities, is controlled by C. Mer Industries Ltd. (TASE: CMER) with a 33% stake, and a group of businessmen including former IEC CEO Amos Lasker. It is traded at a market cap of NIS 56 million. ProCognia is offering NIS 1.71 per share for Sun Team, a 7% premium on today's opening price.
Soleg's core business is a photovoltaic facilities manufacturer, which it acquired from Eliezer Fishman (the controlling shareholder in "Globes") for NIS 125 million two years ago.
ProCognia's share price rose 68.5% today to NIS 0.22, Sun Team's share price rose 9.4% to NIS 1.75, above ProCognia's offer, and C. Mer's share price fell 0.2% to NIS 41.60, giving a market cap of NIS 252 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2014
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