The Gmul investment company is pursuing its first deal under its new owners, Eyal Yona and Amnon Barzilai. Sources inform “Globes” that Gmul has been in intense negotiations in recent weeks to acquire control of Electronics Line (TASE:ELEC; XETRA:EIC) from the Krubiner family. Electronics Line manufactures and markets electronic warning and security systems.
Electronics Line Holding Company founder Abraham Krubiner and his twin sons, chairman Gad Krubiner and substitute chairman and CEO Dan Krubiner, own 28% of the company. If they sell their shares, Discount Investment Corporation (TASE:DISI), the second largest shareholder, will probably also sell.
Discount Investment, which owns 20% of Electronics Line, recently tried to sell its stake to a number of investment concerns. These efforts were defeated by the refusal of the Krubiner family to join the deal.
If the deal goes through, it is expected to reflect a company value for Electronics Line of NIS 225 million, 15% higher than the market price. An Electronics Line spokesperson said in response, “No negotiations are taking place for the sale of the controlling shareholders’ stake, and they do not wish to sell their shares.”
Gmul, which declined to respond to the report, owns 20% of Crow Technologies, which also manufactures electronic security equipment.
Despite a 34% rise this year, at its current price of NIS 24 the Electronics Line share still trades at less than half its value of two years ago, when the Krubiner family sold 15% of the company to Argyle Investment Managers of the US, headed by Hearst-Argyle Television chairman Bob Marbut and former Minister for Economic Affairs to North America Ron Chaimovski.
Published by Globes [online] - www.globes.co.il - on December 24, 2003