Federmann Enterprises now owns 45% of the company.
Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) controlling shareholder Michael Federmann’s Federmann Enterprises bought 5.5% of the company from Koor Industries Ltd. (NYSE: KOR; TASE: KOR) for $70 million in a confidence-building measure. Federmann Enterprises now owns 45% of Elbit Systems’ share capital. The shares sold will be held in trust until Koor is paid in full in five equal installments.
The deal was made at a company value of $1.27 billion for Elbit System, 3% less than its market cap on Wall Street yesterday.
Koor is expected to report a $12 million capital gain on the sale, which is due to be closed on December 26.
Published by Globes [online], Israel business news - www.globes.co.il - on November 22, 2006
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