Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), today
announced that further to its announcement on April 17, 2008, Netvision
(TASE:NTSN), 16% held by Elron, announced yesterday that, it has entered
into an agreement with Bank Leumi LeIsrael (the “Bank”)
to acquire its shares in HOT Communications Systems Ltd. (TASE:HOT) (“HOT”),
an Israeli telecommunications and cable television company, which amount
represents 15% of the issued and outstanding shares of HOT. Pursuant to
Netvision’s announcement, the total aggregate
consideration for the HOT shares is NIS 480 million (approximately $139
million), of which NIS 320 million (approximately $93 million) will be
paid upon the closing of the transaction and the balance of NIS 160
million (approximately $46 million), together with interest at the rate
of 4%, will be paid not later than 18 months from the date of closing.
Netvision announced that to ensure its payment of the second
installment, it will place a lien on one-third of the acquired shares
without any further recourse by the Bank to the company.
Netvision further announced that closing of the transaction is
anticipated to occur not later than August 15, 2008 and is subject to
the following conditions: (i) waiver of rights of first refusal, by
other shareholders of HOT entitled thereto and (ii) receipt of
approvals, as may be required by law for the acquisition of such shares.
There can be no assurance that the transaction will be completed.
Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), a member
of the IDB Holding group, is a leading Israel-based technology holding
company directly involved in the long-term performance of its group
companies. Elron identifies potential technologies, creates strategic
partnerships, secures financing, and recruits highly qualified
management teams. Elron's group companies currently comprise a diverse
range of publicly-traded and privately held companies primarily in the
fields of medical devices, information & communications technology,
clean technology and semiconductors. For further
information, please visit www.elron.com
(Any statements in this press release that may be considered
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially. Actual results may
differ from such forward-looking statements due to the risk factors
discussed in periodic reports filed by the Company with the Securities
and Exchange Commission, which the Company urges investors to consider)
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