Elbit to invest $18 mln in Mikal for 19 pct stake

TEL AVIV, June 15 (Reuters) - Israeli defence firm Elbit Systems Ltd (ESLT.O) (ESLT.TA) said on Monday it had agreed to invest $18 million in Mikal Ltd in exchange for a 19 percent stake in Mikal and the option to buy all remaining shares.

Mikal, which was founded in 1993, has three main businesses -- Soltam Systems Ltd, which manufactures artillery; Symar Ltd, which makes armoured fighting vehicles; and ITL Optronics Ltd, which makes optronic equipment. It has companies both in Israel and abroad.

Ebit said it would first transfer to Mikal $18 million as a loan and then, with authorisation from the Israeli Antitrust Authority, the loan would be converted to an equity investment and Mikal would issue 19 percent of its shares to Elbit.

Elbit would also have the option to purchase the remaining Mikal shares in 2011 for a price to be determined after an independent external valuation is done. (Reporting by Tova Cohen)