IDB selling Given Imaging stake to Covidien for $426 million
After refusing to sell imaging company in past, Dankner's IDF agrees to sell Given Imaging at $1 billion value to Covidien
Three units of Israel's IDB Group
agreed to sell their stakes in camera-in-a-pill maker Given Imaging
(GIVN.TA) to an unnamed international group of investors for $426 million, IDB said on Saturday.
According to IDB, the buyers were a strategic international body, but Calcalist learned that the global pharmaceutical and healthcare company Covidien was buying the Given Imaging stock.
IDB
One of Israel's leading conglomerates, which has debt of NIS 2.06 billion, says controlling shareholders will inject NIS 500 million into company
Given Imaging has a market value of $759 million and IDB said the deal would value the company at about $1 billion.
The three units – Elron Electronic Industries (ELRN.TA), Discount Investment Corp (DISI.TA) and RDC Rafael Development Corp - said they will sell their shares in Given Imaging at $30 a share, a 28% premium to Friday's close of $23.65 on Nasdaq and a 75% one for its annul price.
They plan to bring the deal to their boards for approval on Sunday.
Given Imaging's Pill cam
Last February, Nochi Dankner refused to sell Given Imaging to a large investment firm at $15 a share, claiming the firm was forth much more, and despite lack of cash flow for Discount Investment Corp.
For Covidien this is the fourth purchase of an Israeli firm, after it bought two Israeli companies – superDimension and Oridion – within a two month period at $350 million a piece a year and half ago. It also purchased Polytouch for some $30 million.
Last week, Discount had said it was seeking ways to sell its stake and that Elron would participate.
Elron owns 21.2 percent of Given Imaging, which makes capsule endoscopy products. Discount owns 14.7 percent and RDC holds 8.3 percent. More than 50 percent is publicly traded.
Discount, a unit of IDB Development IDBHD.UL, owns 50.3 percent of Elron and 50.1 percent of RDC. It expects to post a capital gain of 554 million shekels ($158 million) from the sale. IDB Development would record a gain of 357 million shekels, while parent company IDB Holding (IDBH.TA) would post a 347 million shekel gain.
Reuters contributed to this report
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