Koor to Sell Its Soltam Weapon Systems Subsidiary to Michael Ltd. for Approximately $32.5 Million; 1998 3rd Quarter Results to Reflect Pre-Tax Capital Gain of About $19 Million.
TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel--(BUSINESS WIRE)--Aug. 17, 1998--Koor Industries Ltd. (NYSE NYSE
See: New York Stock Exchange :KOR) announced today that the company reached an agreement to sell its holdings in its Soltam weapon systems and metalworking subsidiary to Michael Ltd., an Israeli defense industry company.
Terms of the transaction, which is expected to be completed within 45 days, include a cash payment of approximately $32.5 million, and the agreement includes the transfer of Soltam's technology and other know-how to Michael.
The Soltam divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). also includes a 50% interest in the Yokneam, Israel, site where Soltam's main facilities are located. In addition, Koor granted an option to Michael to purchase the remaining 50% of the site from its Koor Properties real estate subsidiary, for an additional $6 million. The Yokneam site was developed as an industrial park during the past several years.
Koor said that the transaction will result in posting a one-time pre-tax capital gain of slightly more than $19 million in this year's third quarter. (Koor reports results in Israeli shekels -- NIS Niš or Nish (both: nēsh), city (1991 pop. 175,391), SE Serbia, on the Nišava River. An important railway and industrial center, it has industries that manufacture textiles, electronics, spirits, and locomotives. -- with dollar figures provided as convenience translations.)
Commenting on the divestiture, Jonathan Kolber, Koor's chief executive officer, said: "Today's transaction is the most recent example of how we are moving forward to focus exclusively on our core businesses. We continue to reclaim and redirect re·di·rect
tr.v. re·di·rect·ed, re·di·rect·ing, re·di·rects
To change the direction or course of.
A redirect examination.
re our strategic financial and managerial resources, divesting businesses which are non-strategic. By doing so, we can concentrate on the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , electronics and agrochemicals industries where Koor has the scale, strength and depth to compete in global markets."
Soltam's basic business has been the development and production of specialty munitions mu·ni·tion
War materiel, especially weapons and ammunition. Often used in the plural.
tr.v. mu·ni·tioned, mu·ni·tion·ing, mu·ni·tions
To supply with munitions. and other weapons systems, and the company had recently expanded into non-military metalworking, including the production of high-quality household cookware. Michael said it plans to develop additional manufacturing facilities for Soltam, as well as create new jobs.
Koor Industries Ltd. is a holding company with headquarters in Tel Aviv. Its primary holdings include telecommunications and electronics companies such as Tadiran, Tadiran Telecommunications, Telrad and ECI Telecom ECI Telecom Ltd NASDAQ: ECIL, is a telecommunication equipment manufacturer based in Petah Tikva, Israel. , and its main agrochemicals subsidiary is Makhteshim-Agan Industries. Koor employs approximately 21,000 people in Israel and around the world.
Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, international market conditions, domestic political factors, technological developments, ability to finance operations The execution of the joint finance mission to provide financial advice and guidance, support of the procurement process, providing pay support, and providing disbursing support.See also financial management. , and other factors which are detailed in the Company's SEC filings.
CONTACT: Koor Industries Ltd.
Lyon Roth, (972-3) 519-5359 (In Israel)
Phase Two Strategies, Inc.
Stuart Pearlman, 212/716-3400 (In the USA)