The takeover comes on the backdrop of the company's failure to meet its financial covenants. Following the takeover, the three funds will own 70% of the company together and will take over its management, with KCPS and Bereshit at the helm.
Until now, each of the leverage funds owned 6% of the shares; however, under the board of directors' decision from two days ago, the funds will exchange the company's $17 million debt for shares and the company will hold a financing round for another $15 million, after which the funds will control 23%-24% of its shares each, and the Viola fund will control 21% of the shares.
The Shaked family, which owns % 40 of Aeronautics' shares, will slash its stake to 22%.
Although under the terms of the takeover Eitan Ben Eliyahu will stay on as company chairman, CEO and founder Avi Leumi will be replaced. Both funds will add another director to the board and will thus have two directors each.
In September 2011, Bereshit and KCPS leverage funds entered an investment in Aeronautics, with a $35 million capital and convertible loan each.
This report was originally published in Hebrew by Calcalist