D Medical Industries Ltd. (TASE:DMDC) has made a tender offer to purchase the remaining 40% stake in its subsidiary Sindolor Ltd, at a company value of $9 million. D Medical currently holds 53% of the company.
D Medical recently held a fund raising round for Sindolor at a value of $2.4 million before money. If completed, D Medical will raise its stake to 57%. Should the shareholders accept the offer, D Medical will effectively become the sole owner of Sindolor, together with company CEO David Neuberg and the R&D team.
D Medical was prompted to make the buyout offer, after it emerged that Sindolor had been making progress in negotiations to sell its product, a syringe for home use that reduces pain and controls the dosage of the injected medication, to two global drugs giants. The product has already received US Food and Drug Administration (FDA) approval and Sindolor is now applying for EU CE Mark Certification for it.
Sindolor has not disclosed the identity of the companies or the size of the deals it is negotiating with them, although "Globes" previously reported that they could amount to tens of millions of dollars. "Globes" has learned that the talks with the two companies have made substantial progress.
Published by Globes [online], Israel business news - www.globes-online.com - on June 5, 2008
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