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CUSIP No. 57886P103
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13D
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Page 5 of 6 Pages
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During the last five years, none of the Reporting Persons or Related Persons (i) has been convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. All of the individuals referred to above are
United States citizens, with the exception of Rob Ten Hoedt, who is a Dutch citizen; Erik DeGres, who is a Belgian citizen; Salvador Sens, who is a Mexican citizen; and Paul Misere, who is a Dutch citizen.
Item 3
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Source and Amount of Funds or Other Consideration.
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Covidien purchased the ADSs and warrants reported in this Statement directly from the Issuer with cash on hand. The Purchasers (as defined in Item 4 below)
intend to fund the aggregate Merger Consideration (as defined in Item 4 below) with cash on hand.
Item 4
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Purpose of Transaction.
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The ADSs and warrants reported in this Statement were acquired by Covidien in connection with a multi-tranche equity investment in the Issuer, pursuant to the
terms of a purchase agreement dated May 18, 2016 (the
Purchase Agreement
). The first tranche of the equity investment pursuant to the Purchase Agreement, in which Covidien made an investment of $11.9 million at a price
per ADS of $11.42, closed in May 2016. The second tranche of the equity investment pursuant to the Purchase Agreement, in which Covidien made an additional investment of $20 million at a price per ADS of $21.84, closed in August 2016.
On August 29, 2017, Covidien entered into an amendment to the Purchase Agreement (the
Amendment
) and consummated a third tranche
equity investment in the Issuer. The third tranche equity investment pursuant to the Purchase Agreement, as amended, in which Covidien made an investment of $40 million at a price per ADS of $38.46, closed in September 2017. In connection with
this third tranche equity investment, Covidien was issued immediately exercisable warrants to purchase an additional 1,210,000 ADSs, exercisable for a period of 18 months, in whole or in part, for cash.
The foregoing descriptions of the material terms of the Purchase Agreement and the Amendment are qualified in their entirety by reference to the full text of
the Purchase Agreement and the Amendment included as Exhibits 2 and 3 hereto, each of which is incorporated by reference in this Item 4.
On
September 20, 2018, Medtronic and certain of its affiliates determined to pursue a potential change of control transaction with the Issuer, and following such determination, subsidiaries of Medtronic, namely Given Imaging Ltd., Oridion Medical
1987 Ltd., Oridion Systems Ltd., Covidien Israel Holding Ltd. (together, the
Purchasers
) and Belinom Ltd. (
Merger Sub
), entered into an Agreement and Plan of Merger with the Issuer (the
Merger
Agreement
). Subject to the terms and conditions of the Merger Agreement, Merger Sub will merge with and into the Issuer, with the Issuer surviving as a wholly-owned, indirect subsidiary of Medtronic (the
Merger
). At the
effective time of the Merger, each outstanding Ordinary Share, including the Ordinary Shares represented by ADSs but excluding Ordinary Shares (i) owned by the Issuer (or held in its treasury) or any of its wholly-owned subsidiaries or
(ii) owned by Covidien, will be automatically converted into the right to receive an amount in cash equal to $29.25 (the
Merger Consideration
), with no interest and subject to any applicable withholding taxes.
Upon completion of the Merger, Medtronic will beneficially own 100% of the outstanding equity of the Issuer, and will control the appointment of directors and
officers of the Issuer. As a result, Medtronic will have the ability, through its subsidiaries, to amend or replace the constitutive documents of the Issuer and to control other actions of the Issuer. Upon completion of the Merger, (i) the ADSs
currently listed on the Nasdaq Stock Market (
Nasdaq
) will cease to be listed on Nasdaq and will subsequently be deregistered under the Act and (ii) the Ordinary Shares currently listed on the Tel Aviv Stock Exchange
(
TASE
) will cease to be listed on TASE and will subsequently be deregistered under the Israel Securities Law.
Item 5
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Interest in Securities of the Issuer.
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The information contained on the cover pages of this Statement is incorporated herein by reference.
Item 6
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Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.
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The information set forth in Item 4 of this Statement is incorporated herein by reference.
Item 7
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Material to be Filed as Exhibits.
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Exhibit 1. Joint Filing Agreement, dated August 22, 2016, by and between Medtronic and Covidien (incorporated by reference to Exhibit 1 to the Statement
of Beneficial Ownership on Schedule 13G filed by the Reporting Persons on August 22, 2016).
Exhibit 2. Purchase Agreement, dated May 18, 2016,
by and between Covidien and the Issuer (incorporated by reference to Exhibit 4.12 to the Annual Report on Form
20-F
filed by the Issuer on May 1, 2017).
Exhibit 3. First Amendment to Purchase Agreement, dated August 29, 2017, by and between Covidien and the Issuer (incorporated by reference to Exhibit
4.16 to the Annual Report on Form
20-F
filed by the Issuer on April 30, 2018).
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