Nexus Telocation Systems Ltd. Announces its Board of Directors Approved In Principal the Purchase of the Activities and Assets o
July 27 2004 - 8:00AM
PR Newswire (US)
Nexus Telocation Systems Ltd. Announces its Board of Directors
Approved In Principal the Purchase of the Activities and Assets of
Shagrir GIVATAYIM, Israel, July 27 /PRNewswire-FirstCall/ -- Nexus
Telocation Systems Ltd. (OTC:NXUS) (BULLETIN BOARD: NXUS) , a
leading Provider of Stolen Vehicle Retrieval services, announced
that its Board of Directors approved in principal the purchase,
either directly by Nexus or through a subsidiary, of the activities
and assets of Shagrir Towing Services Ltd. And Shagrir (1985) Ltd.,
in consideration for approximately NIS 200 million, of which NIS
190 million is for Shagrir's goodwill and the remaining balance to
equal the difference between Shagrir's assets and liabilities as of
the closing date. NIS 50 million of the consideration is to be
funded by a loan to be provided by Shagrir. Nexus is in advanced
stages of negotiations with financial institutions and strategic
investors for raising money in order to obtain the required funds
for the purchase of Shagrir's activities and assets. Shagrir is one
of the leading companies in Israel in the field of automobile
repair services and towing services. Shagrir has approximately
730,000 subscribers throughout Israel and its fleet of vehicles
include approximately 130 service cars, mobile garages and towing
vehicles. The completion of the transaction is subject to the
reaching of definitive agreements; the completion of due diligence
review to the satisfaction of Nexus; obtaining financing for the
transaction; receipt of regulatory approvals; and reaching services
agreements with insurance companies. Nexus Telocation Systems Ltd.
develops, manufactures and markets low energy and cost effective
wireless communications and location based information systems
through the application of digital spread spectrum technologies
deployed in Stolen Vehicle Retrieval applications. 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:
DATASOURCE: Nexus Telocation Systems Ltd CONTACT: Contact: Ronen
Stein, V.P. and Chief Financial Officer, Tel.; +972-3-572-3111,
e-mail:
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