Elron declares $110m dividend

The distribution is largely of the proceeds of the sale of Elron's stake in Given Imaging.

Elron Electronic Industries Ltd. (TASE: ELRN), controlled by the IDB group, is distributing a dividend to its shareholders. Elron notified the Tel Aviv Stock Exchange this morning that it would distribute a dividend of $110 million, or $3.7 per share, under a decision by the company's board yesterday.

The record date for the distribution is September 8, and the payment date is September 22. Elron's share price is currently up by more than 8%.

The largest shareholder in Elron is Discount Investment (50.3%), which is 74% owned by IDB Development, controlled by Moti Ben-Moshe and Eduardo Elsztain. Other large shareholders in Elron are Israeli financial institutions, including Yelin Lapidot and Meitav Dash.

Elron explains that its board approved the dividend distribution on the basis of the surpluses the company had accumulated in the past two years amounting to $120.9 million.

Elron's announcement also said that the company had generated cash surplus to its routine requirements in its present format, as a result of the sale of its own and its subsidiary RDC's holdings in Given Imaging.

Elron, a technology holding company, last distributed a dividend two years ago. At that time, its shareholders received $0.51per share, or $15 million in total.

Elron held 21% of Given Imaging, which developed a camera-in-a-pill device for diagnostics in the digestive system. In addition, RDC, of which Elron owns 50%, held a further 8% of Given Imaging. In the first quarter of this year, Elron posted a net post-tax gain of $107 million on the sale.

In the first half of 2014, Elron posted a profit attributable to shareholders of $98 million, compared with a loss of $7.6 million in the corresponding quarter.

Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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