Tel Aviv-traded Iscal, which acquired the 18% controlling interest in Formula Systems (Nasdaq:FORTY) two weeks ago, wants to buy another $10 million worth of Formula stock on the exchange, TheMarker has learned.
That sum should bring it another 8% of the software group's equity. Iscal will be borrowing the capital from Bank Leumi.
Investors beat a hasty retreat after the Goldsteins, Dan and Gad, sold their personally-held Formula interests to Iscal. Formula shares drooped to an attractive NIS 5.6, which Iscal evidently views as a good opportunity to stock up.
Since control over Formula changed hands, its stock has lost a total of 20%. Formula's market cap has slumped to a low $126 million.
Iscal intends to achieve a 35% stake in Formula in order to consolidate its control. It hopes to build up its interest to 25% next week, and to acquire the other 10% through one of its own controlling shareholders, possibly Tel Aviv-traded Feuchtwanger Industries.