Elbit Systems raises offer for Ashot Ashkelon shares
23 April 2020 - globes
The Israeli defense electronics company has lifted its offer for the public's shares in Ashot from NIS 7 to NIS 12.
Ashot Ashkelon Industries Ltd. (TASE: ASHO) share price is up 17.68% on the Tel Aviv Stock Exchange (TASE) after controlling shareholder Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) raised its offer to buy all the shares held by the public.
Israeli defense electronics company Elbit Systems already holds an 85% stake in Ashot Ashkelon, which it received in 2018 when it acquired IMI Systems from the Israeli government. Ashot manufactures build to print products such as gears, transmissions and gearboxes for the aerospace, military, and automotive industries.
Two weeks ago, Elbit offer NIS 7 per share for a total of NIS 24.8 million. Elbit has now raised that offer to NIS 12 per share for a total of NIS 42.5 million. The latest offer is an 86.9% premium on its first offer two weeks ago and a 17.9% premium on Ashot's closing price last night. Elbit's latest offer is valid until April 27.