Gilat is sold

chris

Satellite broadband specialist Gilat looks like it is about to be sold.
Israel-based Gilat Satellite Networks is reported to be in the process of being bought. Buyers are a consortium comprising Mivtach Shamir Holdings Ltd and a Los Angeles-based private equity group, Gores Group LLC. The Tel Aviv stock exchange was notified of the move on March 31.

Sale price is reportedly $475m, a 15% premium over Gilat’s current market capitalisation of $412m, and the sale should wrap by September.

Amiram Levinberg, Chairman of the Board and Chief Executive Officer of Gilat, said: “We believe that this acquisition presents our shareholders, customers, employees and partners with an exciting opportunity. Our Board of Directors has always focused on long term shareholder value. In the last eleven months, we have evaluated our strategy going forward and after careful and thorough analysis, and with the completion of extensive negotiations with the buyers, the Board of Directors has decided to endorse this transaction as being in the best interest of our shareholders and recommends that it be approved by them. We believe that this transaction recognizes the value of Gilat’s strong market position and product portfolio, while providing our shareholders with an attractive cash offer. As we move from a public to a private company, I remain committed to the Company and its long term growth strategy. Our success is driven by the hard work, commitment and dedication of our capable employees around the world and I thank them for their invaluable contribution to Gilat."


source: Rapid TV News

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