Magal Security Systems Ltd. (Nasdaq: MAGS; TASE: MAGS) rights issue is getting underway. Controlling shareholder Nathan Kirsh began planning the rights issue last summer as part of a struggle for control of the company. The company plans to raise NIS 15.8 million (NIS 54 million).
According to the prospectus published on Tuesday, Magal will offer shareholders shares at $3.03 each, the same as yesterday's closing price on Nasdaq. The rights issue in intended for shareholders on both the Tel Aviv Stock Exchange (TASE) and Nasdaq. The rights will be offered on June 29 and the company will announce the results on July 25.
Magal manufactures perimeter security systems. The rights issue will use the US method, in which current shareholders can buy unused rights from shareholders who opt not to participate in the offering. Kirsh, who currently owns 25.3% of Magal, has undertaken to invest up to $15 million in the issue, guaranteeing the issue, even if other shareholders do not participate.
Magal's share price was unchanged at NIS 10.52 in morning trading on the TASE today, after remaining unchanged on Nasdaq yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2011
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