Elscint sold its 49% stake in Gilbridge venture capital fund for $5m

Fund has committed to repaying NIS 19m loan by October 2005
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Elbit Medical Systems (Nasdaq:EMITF) subsidiary Elscint (NYSE:ELT) is selling its 49% stake in the Gilbridge Holdings venture capital fund.

The Elbit Medical group is controlled by real-estate tycoon Motti Zisser, through his Tel Aviv-listed company Europe Israel. The Gilbridge fund is controlled by businessman Emmanuel Gill.

Financial statements published by Europe Israel state that in October 2001, Elscint agreed to sell all its shares and rights in Gilbridge to Emmanuel Gill for $5 million.

The parties also agreed that if Gilbridge must repay Elscint a loan totaling NIS 18.9 million by October 2005.

Gilbridge began operations at year-end 2000 with $20 million for investments. It picked several technology and biotechnology startups and has already had to write down their value by $5 million.