Elbit Systems to Invest $18 Million for 19% of Mikal Ltd. With an Option to Acquire the Remaining Shares
June 15 2009 - 8:43AM
PR Newswire (US)
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. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080408/300441 ) 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. For additional
information, visit: http://www.elbitsystems.com/. 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: IR contact: Ehud Helft / Kenny Green G.K.
Investor Relations Tel: +1-646-201-9246 E-mail:
http://www.newscom.com/cgi-bin/prnh/20080408/300441DATASOURCE:
Elbit Systems Ltd CONTACT: 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: , . IR contact: Ehud Helft / Kenny Green,
G.K. Investor Relations, Tel: +1-646-201-9246, E-mail:
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