Biomedix Incubator Ltd. (TASE:BMDX.M), which controls Meytav Technological Enterprises Innovation Center Ltd. in Kiryat Shmona has bought BioLineRx Ltd.’s entire 8.33% stake in the incubator. Biomedix is controlled by Zeev Bronfeld, Eyal Sheratzky, Erez Gal, Meni Mor, and Pontifax Ltd., one of whose owners is Teva chairman Eli Hurvitz.
Biomedix acquired a stock market shell, through which it acquired control of Meytav, its sole current holding. BiolineRX is a drug development incubator in Jerusalem. Its investors include Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), Pitango Venture Capital, Giza Venture Capital and Star Ventures, Hadasit Ltd. (the transfer company of Hadassah Medical Organization), and the Jerusalem Development Authority.
Biomedix has a market cap of NIS 92 million. This value gives a Meytav a company value of NIS 138 million, and BiolineRX’s stake a value of NIS 11.4 million. BiolineRX sold its stake to Biomedix for $400,000 (NIS 1.8 million) well below the market value of the holding.
BioLineRX CEO Dr. Morris Laster said the company’s investment in Meytav was made before Biomedix acquired control of the incubator and turned it into a public company. “Owning shares in public companies isn't part of our strategy,” he said today. “We’re staying on as a partner without a holding in Meytav, an incubator we value highly. We’ll continue to sit on its board, and we’ll continue to send them projects and get projects from them.”
Laster said the only party interested in buying BiolineRX’s holding in Meytav, which was not liquid, when it was possible to make liquid invest in it through Biomedix, was Meytav’s existing shareholders. “Among them, Biomedix offered us the highest price.”
The sale is subject to Meytav’s other shareholders foregoing their participation and tag-along rights, and approval of Meytav, BiolineRX and Biomedix’s boards.
Published by Globes [online], Israel business news - www.globes.co.il - on June 19, 2006
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