Israeli private equity firm FIMI is to purchase a 12.1% stake in Gilat Satellite Networks from hedge fund York Capital Management for US$25.57m.
Pursuant to an agreement dated 17 September 2014, FIMI has launched a cash tender offer to purchase…
Israeli private equity firm FIMI is to purchase a 12.1% stake in Gilat Satellite Networks from hedge fund York Capital Management for US$25.57m.
Pursuant to an agreement dated 17 September 2014, FIMI has launched a cash tender offer to purchase 5,166,348 ordinary shares of Gilat that are held by York for US$4.95 per share. The fund has in turn undertaken to accept the offer.
The special tender offer, which is required under Israeli law, is due to expire on 25 November, at which point FIMI will have increased its controlling stake in Gilat from 23% to 35.1%.
FIMI became Gilat’s largest shareholder at the beginning the year after it agreed to purchase 2,106,121 ordinary shares held by York for US$5 per share. This increased its share holding to just over 23% and in turn reduced York’s stake 14.5%. The hedge fund had previously been Gilat’s controlling shareholder.
FIMI first began amassing a position in Gilat in September 2012 when it bought Menorah Insurance company’s 10.5% stake for around NIS63m (US$18m). It quickly followed this in November with two more purchases of 4% each.
The investments are being made through FIMI’s fifth fund, which raised US$850m in 2012 and was the largest fund ever raised by an Israeli investment fund.
The private equity firm currently has two places on the Gilat board, Ishay David, the founder and chief executive of FIMI, and Amiram Boehm, a partner at the sponsor.
