By Jennifer Chiou
New York, July 2 - ECI Telecom Ltd. said it entered into a definitive merger agreement to be acquired by affiliates of the Swarth Group in a transaction valued at $1.2 billion.
Swarth is an investment vehicle controlled by Shaul Shani and certain funds that have Ashmore Investment Management Ltd. as their investment manager.
Under the terms of the agreement, ECI shareholders will receive $10.00 per share in cash at closing, representing a premium of about 22% over ECI's average closing share price during the 30 trading days ended June 15.
The company confirmed it was in discussions with third parties regarding a possible transaction on June 17.
ECI noted that there is no financing condition.
The company also said that its board approved the agreement and recommended that ECI shareholders vote in favor of the transaction.
The closing of the transaction is subject to shareholder approval, certain regulatory approvals and other customary closing conditions.
It is anticipated that the transaction will be completed by the end of the year.
Each of Koor Industries, Clal Industries & Investments and a group led by Carmel Ventures, the owners of about 44% of ECI's outstanding ordinary shares, have entered into voting undertakings with the buyers, under which they have agreed to vote their shares in favor of the transaction. These undertakings will terminate if the ECI board changes its recommendation in favor of the proposed transaction with the current buyers.
Under the agreement, ECI may actively solicit alternative proposals from third parties until July 31.
Based in Petah Tikva, Israel, ECI provides networking infrastructure equipment.
| Acquirer: | Swarth Group affiliates
|
| Target: | ECI Telecom Ltd.
|
| Transaction total: | $1.2 billion
|
| Price per share: | $10.00
|
| Announcement date: | July 2
|
| Expected closing: | Before the end of the year
|
| Stock price for target: | Nasdaq: ECIL: $9.15 on June 29
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
