Why Elbit Imaging (EMITF) Is Soaring on Tuesday

NEW YORK (TheStreet) -- Elbit Imaging ( EMITF) is rocketing higher on Tuesday after announcing  Gamida Cell Ltd, which Elbit's subsidiary Elbit Medical Technologies holds 30.8% voting power in, had received an acquisition proposal from a pharmaceutical company.

By midafternoon, Elbit Imaging shares had climbed 37.3% to 28 cents. Trading volume of 8.4 million was nearly nine times higher than its three-month daily average.

"The proposed consideration for such purchase is expected to include a payment of a significant amount upon closing, as well as certain milestone-based payments (contingent upon development, regulatory approvals or sales related to Gamida Cell's product), with such proposed consideration expected to amount to up to several hundred million dollars," the company said in a statement.

The Israel-based business said no definitive agreement had been signed nor did it disclose which global pharmaceutical company had made the offer.

Elbit Imaging holds 86% voting power in Elbit Medical Technologies.

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EMITF Chart EMITF data by YCharts

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