TEL AVIV, Israel--(Business Wire)--
Elron Electronic Industries Ltd. (NASDAQ:ELRN)(TASE:ELRN) today announced that a
non-binding indication of interest (the "Indication") of a third party regarding
a potential acquisition of Medingo Ltd. ("Medingo"), an Elron subsidiary, has
been received.
The Indication relates to an acquisition of Medingo's entire share capital for a
cash consideration ranging from $150 million to $170 million and a contingent
additional cash consideration conditional upon one or more milestone(s) to be
mutually agreed, which may bring total consideration up to between $185 million
and $213 million. The transaction would be subject mainly to (i) the parties
entering into a mutually agreed definitive agreement; (ii) satisfactory
completion of a full due diligence by the third party; and (iii) the parties
obtaining applicable corporate and regulatory approvals.
In the event of consummation of such transaction, Elron would be expected to
record a net gain initially estimated at this stage to be between approximately
$54 million and approximately $80 million. This gain includes Elron's share in
the net gain expected to be recorded by RDC Rafael Development Corporation Ltd.
("RDC"), through which Elron owns part of its holding in Medingo.
There is no assurance of the occurrence, timing or terms of any such
transaction.
Medingo is 92% held by Elron (including 83% held by RDC, Elron's 50.1%
subsidiary). Medingo is engaged in the development and commercialization of a
miniature insulin dispensing patch pump for the needs of insulin-dependent
diabetic patients. For more information concerning Medingo, see Item 4 of our
annual report on Form 20-F for 2008 which is available on the SEC`s website at
www.sec.gov.
Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), a member of the IDB
Holding group, is a high-technology holding company traded in the Nasdaq and in
the Tel-Aviv Stock Exchange. Elron`s group companies currently comprise a
diverse range of publicly-traded and privately held companies primarily in the
fields of medical devices, information & communications technology, clean
technology and semiconductors. Included in our group companies are well
established companies which are leaders in their fields, such as Given Imaging
and 013 NetVision, together with innovative start-up s who possess growth
potential in Israel and the rest of the world. For further information, please
visit www.elron.com.
www.elron.com
Elron Electronic Industries Ltd.
Rinat Remler, Vice President & CFO
Tel. 972-3-6075555
elron@elron.com
Copyright Business Wire 2009
