IDB Group to sell Given Imaging stake for $426 million

JERUSALEM Sat Dec 7, 2013 2:23pm EST

JERUSALEM Dec 7 (Reuters) - Three units of Israel's IDB Group agreed to sell their stakes in camera-in-a-pill maker Given Imaging to an unnamed international group of investors for $426 million, IDB said on Saturday.

The three units - Elron Electronic Industries, Discount Investment Corp and RDC Rafael Development Corp - said they will sell their shares in Given Imaging at $30 a share, a 28 percent premium to Friday's close of $23.65 on Nasdaq.

They plan to bring the deal to their boards for approval on Sunday.

Given Imaging has a market value of $759 million and IDB said the deal would value the company at about $1 billion.

Last week, Discount had said it was seeking ways to sell its stake and that Elron would participate.

Elron owns 21.2 percent of Given Imaging, which makes capsule endoscopy products. Discount owns 14.7 percent and RDC holds 8.3 percent. More than 50 percent is publicly traded.

Discount, a unit of IDB Development, owns 50.3 percent of Elron and 50.1 percent of RDC. It expects to post a capital gain of 554 million shekels ($158 million) from the sale. IDB Development would record a gain of 357 million shekels, while parent company IDB Holding would post a 347 million shekel gain.

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