Elbit Systems to Invest $18 Million for 19% of Mikal Ltd. With an Option to Acquire the Remaining Shares
PRNewswire, June 3. HAIFA, Israel - Elbit Systems Ltd logo. (PRNewsFoto/Elbit Systems Ltd)
HAIFA ISRAEL
HAIFA, Israel, June 15 /PRNewswire-FirstCall/ -- Elbit Systems Ltd.
(NASDAQ: ESLT), announced today that it signed an agreement with Mikal Ltd.
("Mikal") under which it will invest approximately $18 million in Mikal in
consideration for the issuance of approximately 19% of Mikal's shares. As
part of the of the agreement, Elbit Systems also will be granted the option
to purchase all of the remaining shares of Mikal from its shareholders.
In the first stage of the transaction, Elbit Systems will transfer to
Mikal $18 million, which will serve as a loan. After receiving authorization
from the Israeli Antitrust Authority and subject to such authorization, the
loan will be converted to an equity investment, and Mikal will issue
approximately 19% of its shares to Elbit Systems and Elbit Systems will be
granted the option to purchase the remaining shares of Mikal from the other
shareholders, in the course of 2011, for a purchase price to be determined in
accordance with an independent external valuation.
Mikal was founded in 1993 by Abraham (Miko) Gilat. The Mikal group
operates through three main branches including Soltam Systems Ltd. in the
field of artillery, the field of armored fighting vehicles led by Symar Ltd.
and the field of optronics, led by ITL Optronics Ltd. The group owns
companies both in Israel and throughout the world.
About Elbit Systems
Elbit Systems Ltd. is an international defense electronics company
engaged in a wide range of defense-related programs throughout the world. The
Company, which includes Elbit Systems and its subsidiaries, operates in the
areas of aerospace, land and naval systems, command, control, communications,
computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned
air vehicle (UAV) systems, advanced electro-optics, electro-optic space
systems, EW suites, airborne warning systems, ELINT systems, data links and
military communications systems and radios. The Company also focuses on the
upgrading of existing military platforms and developing new technologies for
defense, homeland security and commercial aviation applications.
This press release contains forward-looking statements (within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended) regarding Elbit
Systems Ltd. and/or its subsidiaries (collectively the Company), to the
extent such statements do not relate to historical or current fact. Forward
Looking Statements are based on management's expectations, estimates,
projections and assumptions. Forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, as amended. These statements are not guarantees of future performance
and involve certain risks and uncertainties, which are difficult to predict.
Therefore, actual future results, performance and trends may differ
materially from these forward-looking statements due to a variety of factors,
including, without limitation: scope and length of customer contracts;
governmental regulations and approvals; changes in governmental budgeting
priorities; general market, political and economic conditions in the
countries in which the Company operates or sells, including Israel and the
United States among others; differences in anticipated and actual program
performance, including the ability to perform under long-term fixed-price
contracts; and the outcome of legal and/or regulatory proceedings. The
factors listed above are not all-inclusive, and further information is
contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is
on file with the U.S. Securities and Exchange Commission. All forward-looking
statements speak only as of the date of this release. The Company does not
undertake to update its forward-looking statements.
Contacts:
Company contact:
Joseph Gaspar, Executive VP & CFO
Dalia Rosen, Head of Corporate Communications
Elbit Systems Ltd
Tel: +972-4-8316663
Fax: +972-4-8316944
E-mail: j.gaspr@elbitsystems.comdalia.rosen@elbitsystems.com
IR contact:
Ehud Helft / Kenny Green
G.K. Investor Relations
Tel: +1-646-201-9246
E-mail: info@gkir.com
