July 6, 2009 (FinancialWire) — Elron Electronic Industries Ltd. (NASDAQ: ELRN) (Current Market Cap: $103.18 Mil.) said it plans to negotiate with Clal Industries and Investments Ltd. and Discount Investment Corp. Ltd. regarding a transaction in which Clal and DIC will acquire Elron’s roughly 15% interest in NetVision Ltd., a provider of communication services in Israel.
According to the company’s, price of Elron’s interest in Netvision will be determined by negotiation between the parties based on an appraisal of such interest to be prepared, and for that purpose, an independent appraiser was been jointly appointed by the parties.
Elron said it also plans to engage an independent expert to express an opinion as to the fairness for Elron of the price to be determined.
IC currently holds around 49% of Elron’s outstanding ordinary shares. DIC and Clal are both majority owned subsidiaries of IDB Development Ltd. DIC and Clal currently hold around 31% and 24%, respectively, of Netvision’s outstanding ordinary shares.
Elron, DIC and Clal are parties to a shareholders agreement in connection with their respective holdings of Netvision shares.
Israel-based Elron Electronic Industries is a high-technology holding company whose group companies operate primarily in the fields of medical devices, information and communications technology, clean technology and semiconductors.
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