IAI exercised an option for 5% of the company for $1.54 million.
Israel Aerospace Industries Ltd. (IAI) has exercised an option for 5% of Tiltan Engineering Systems Ltd. for $1.54 million. IAI bought 30% of the company, which makes visual display systems for the military market, from Matrix IT Ltd. (TASE:MTRX) in October 2006. Matrix IT will report a capital gain of NIS 1 million on the sale in the first quarter.
IAI and Matrix IT signed the original contract a year ago. The initial sale was made at a company value of $20 million for Tiltan. Matrix IT’s stake in Tiltan has now fallen to 35%. The exercising of the option also seems to indicate a change in Tiltan’s company value - it was $31 million, 50% higher than the company value in the original sale.
Published by Globes [online], Israel business news - www.globes.co.il - on January 11, 2007
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