Noga Technologies (TASE:NGTC) CEO Itzik Goldenberg is acquiring the shares of parent company Noga Electrotechnika (TASE:NOGA), a holding of the Uzan family (37.4%) and of Goldenberg himself. Noga Electrotechnika's stake in Noga Technologies totals 65.6%, and the purchase by Goldenberg will put NIS 108.75 million in the parent company's till.
Noga Technologies, of which Goldenberg now holds 62%, is traded on the TASE according to a NIS 107 million market capitalization. The sale will be held according to NIS 165 million company value, 59% higher than the company's market value.
To finance the purchase of 7.25 million Noga Technologies shares at NIS 107 million Goldenberg will use a NIS 35 million credit line from Noga Technologies, some personal capital and loans from local banks.
The unusually high premium Goldenberg is willing to pay raises the question whether he knows something about Noga Technologies that other investors do not.
Goldenberg claims he has no such information, and if he did he would be required to inform the stock exchange. He said the deal is due to the board of Noga Electrotechnika's desire to focus on construction, real estate and electro mechanics contracting, while reducing its exposure to technology, which lent a harsh blow to the company's results last year.
Goldenberg said that in light of his faith in Noga Technologies portfolio companies and his desire to expand, the two sides decided to go their separate ways. After a three-month negotiation and internal valuations by both sides, an agreement was reached.