Iscal Holdings-controlled Formula Systems (Nasdaq:FORTY) is increasing its stake in software house Liraz, whose main asset is a 27% holding in Level 8 Systems (Nasdaq:LVEL). Formula offered NIS 6.5 per share for 400,000 Liraz shares, 21% above the market price. The purchase offer totals NIS 2.6 million.
Formula currently holds 7.5%, or 500,000, Liraz shares.
In September Liraz announced an agreement with Discount Investment Corporation and a business enterprise firm belonging to Level 8 chairman Arik Kilman, to purchase 2.48 million, or 37.3% of Liraz's equity capital, from the two firms for $2.25 per share.
Formula will only get these shares after receiving the approval of the Antitrust Authority and its shareholders.
Shareholders can respond to Formula's purchase offer up to November 20. If its tender is met in full, Formula could end up with a 50.7% stake in Liraz.