heading correction to news /shamrock:
Formula Systems (1985) Ltd. Announces Grant of Option to Shamrock Holdings of California Inc. to Invest in Its Subsidiaries
PR Newswire - July 07, 1999 16:30
HERZLIYA, Israel, July 7 /PRNewswire/ -- Formula Systems (1985) Ltd. (Nasdaq: FORTY), a leading international provider of information technology solutions and services, announced today that it has entered into an agreement with Shamrock Holdings of California Inc. ("Shamrock"), a leading private investment company owned by Roy Disney's family, whereby Shamrock will be granted an option to invest in companies in which Formula holds at least 25%, either directly or by way of purchase from Formula or third parties. The total investment consideration will not exceed $25 million, and the option to invest, according to the agreement, will be limited to a period of 8 months commencing on the date of the execution of the agreement. Shamrock was granted an option to exchange the purchased securities acquired during the investment period for Formula's securities, which will be allotted for that purpose to one of Formula's subsidiaries.
The period during which Shamrock will be entitled to execute the above exchange will be 45 days commencing 27 months following the date of the purchase of the above securities.
The exchange of the shares as described above will be based on the cost of the purchased securities held by Shamrock on the exchange date (calculated separately for each subsidiary) and the price of Formula's securities on the exchange date, subject to certain adjustments.
In making the announcement, Dan Goldstein, Chairman and CEO of the Formula Group said, "We are extremely pleased to have Shamrock as an investor and partner. Based on a long-term relationship that was established between Shamrock and Formula and the joint venture in Formula's Venture Fund, we view this alliance as an important strategic step for the Formula Group."
Stanley Gold, President of Shamrock said, "The agreement is a new and positive development in our existing relationship with the Formula Group. We believe this investment will enable the Shamrock Group to leverage Formula's expertise and to benefit from Formula's strong and growing global presence as a leading international provider of information technology solutions and services."
The aforementioned transaction is subject to the required approvals under any applicable law, including approvals under the relevant Securities Regulations.
Formula Systems (1985) Ltd. is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions. Formula Systems (Nasdaq: FORTY), is the largest public IT company in Israel.
This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to, market demand for the Company's products, successful implementation of the Company's growth and the ability to recruit additional personnel.
SOURCE Formula Systems (1985) Ltd.
/CONTACT: Dan Goldstein, Chairman of Formula Systems (1985) Ltd.,
011-972-9959-8800; or Dennis S. Dobson of Dennis S. Dobson Inc., 203-255-7902,
for Formula Systems (1985) Ltd./
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