Nexus Telocation Systems Ltd. Announces Exercise of Option to Purchase Shares of Shagrir Vehicle Systems Ltd.
November 30 2005 - 7:15AM
PR Newswire (US)
GIVATAYIM, Israel, November 30 /PRNewswire-FirstCall/ -- Nexus is
expected to record in its Q4 2005 financials: - Capital gain -
above $300 thousand - Reduction of loans - approximately $6.2
million Nexus Telocation Systems Ltd. (Nasdaq Capital Market:
NXUS), a leading provider of stolen vehicle retrieval services in
Israel, Argentina and Mexico, and a leading provider of road side
assistance and towing services in Israel, reports today that the
group of investors led by Gandyr Investments Ltd., which, as
previously reported, closed an agreement, in February 28, 2005,
with Nexus and Shagrir Vehicle Systems Ltd., a subsidiary of Nexus,
exercised their option (prior to the date of expiration of such
option which was set for February 28, 2007) to purchase shares in
Shagrir, at an aggregate purchase price of NIS 29,100,000.
Simultaneously Shagrir is to repay loans in an amount of NIS
29,100,000. Following the said exercise: - Nexus is expected to
record in its consolidated financial statements of Q4 2005 a
capital gain of above $300,000, mainly due to a reduction of
approximately $6.2 million in liabilities and realization of
approximately $5.8 million of intangible assets. - Nexus holds
approximately 56.56% of the issued share capital of Shagrir and the
group of investors lead by Gandyr Investments Ltd. holds
approximately 43.44% of the issued share capital of Shagrir. -
Financial expenses and amortization of intangible assets are
expected to reduce. Mr. Yossi Ben Shalom, Chairman of the Board of
Directors of Nexus and Shagrir commented: "The decision of the
investors to exercise their right to purchase shares in Shagrir is
a vote of confidence in the company and its activities and is a
direct result of the improvement of the financial results of the
company." Nexus Telocation Systems Ltd. is a service provider of a
range of services to automobile owners and insurance companies,
including road-side assistance, vehicle towing, stolen vehicle
retrieval, fleet management and other value added services. Nexus
provides services, for the most part, in Israel, through its
subsidiary Shagrir and in Argentina and Mexico through its local
subsidiaries. . Independent operators provide similar services in
Russia and Venezuela utilizing Nexus' technology and operational
know-how. This press release contains forward-looking statements
with respect to the business, financial condition and results of
operations of Nexus and its affiliates. These forward-looking
statements are based on the current expectations of the management
of Nexus, only, and are subject to risk and uncertainties relating
to changes in technology and market requirements, the company's
concentration on one industry in limited territories, decline in
demand for the company's products and those of its affiliates,
inability to timely develop and introduce new technologies,
products and applications, and loss of market share and pressure on
pricing resulting from competition, which could cause the actual
results or performance of the company to differ materially from
those contemplated in such forward-looking statements. Nexus
undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events. For a more detailed description of the risks and
uncertainties affecting the company, reference is made to the
company's reports filed from time to time with the Securities and
Exchange Commission. Contact: Ronen Stein, V.P. and Chief Financial
Officer Tel: +972-3-572-3111 E-mail: Yael Nevat, Commitment-IR.com
Tel: +972-3-611-4466 E-mail: DATASOURCE: Nexus Telocation Systems
Ltd CONTACT: Contact: Ronen Stein, V.P. and Chief Financial
Officer, Tel: +972-3-572-3111, E-mail: . Yael Nevat,
Commitment-IR.com, Tel: +972-3-611-4466, E-mail:
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