Elbit Systems to acquire IMI Systems for NIS 1.8b

IMI Systems

Israel's Ministry of Finance has reached agreement with Elbit Systems over the privatization of Israel Military Industry (IMI) Systems.

Israel's Ministry of Finance has reached agreement with Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) over the sale of Israel Military Industry (IMI) Systems for NIS 1.8 billion, with another NIS 100 million depending on financial results. The agreement comes after several months of talks between Elbit Systems executives and government officials including Accountant General Rony Hizkiyahu, and representatives from the Israel Government Companies Authority, the Ministry of Finance budget department, the Ministry of Defense, and the Israel Lands Authority.

The decision to privatize IMI Systems was taken in 2013 and after a competitive process, Elbit Systems was left as the only company interested in the acquisition.

As part of the deal, Elbit Systems has agreed to vacate the company's Ramat Hasharon headquarters and other plants, which will allow for the development of thousands of new homes in high demand areas.

Minister of Finance Moshe Kahlon said, "The agreement reached today continues the Ministry of Finance's policy of vacating areas in demand areas for the benefit of the public. Transferring the plants to the Negev will allow for the construction of thousands of homes while strengthening industry and employment in the Negev."

Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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