Here's the Globe story:
globes.co.il
So now that people have actually been verified as reading this thread, what do you all think of ESCMF's future? Thanks.
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Sunday , Nov 9, 1997 Sun-Thu at 18:00 (GMT+3)
Headlines
ESC, Laser Industries Merge To Form World's Leading Laser Firm
By Ami Ginsburg
Two Israeli representatives of the field of laser instruments for
cosmetic and medical uses, have decided to merge. The transaction will
be concluded by exchange of shares. ESC, which has a significantly
higher market value, will be the lead company in the merger.
ESC's market value presently stands at $873 million, while that of Laser
Industries amounts to $205 million. Laser Industries' shares will be
de-listed on completion of the merger.
Under the terms of the deal now taking shape, each Laser Industries
shareholder will receive 0.75 shares of ESC. At present, the per share
price of ESC is $42, so that each Laser Industries share is currently
"worth" $31.5. The Laser Industries share itself closed on Friday at
$23.25, so that the shareholders' premium stands at 35% of the market
price of the shares. These merger ratios will be in force as long as any
ESC share is in the $30-60 price range. After the merger, ESC
shareholders will hold 75% of the company's shares, and the owners of
Laser Industries will hold 25%.
The merger will be effected by the pooling method, meaning that the two
companies will present their results as if they had always been merged.
In the first quarter of 1998, ESC will record one-off expenses in
respect of the merger.
The principal shareholder of Laser Industries is Aryeh Ganger, whose 17%
holding is maintained through Haifa Chemicals and another company. After
the merger, Ganger will hold 4% of the shares of ESC and will be
entitled to be represented on the company's Board of Directors. Another
major shareholder is the US Fidelity Fund, which holds 8% of the shares,
while 25% are in the hands of various institutional investors.
ESC and Laser both present record results in the third quarter of 1997.
ESC recorded, in the July-September period, revenues of $30 million and
a net profit of $8 million. In the first nine months of the year, the
company posted revenues of $78.5 million and a profit of $15.6 million.
Laser Industries is a company of long standing, which in the past
engaged in various laser technology applications, mainly in the medical
field. In recent years, the company has shown renewed growth, mainly due
to its entry into the fields of cosmetics, and it also markets a
depilatory product.
The main strength Laser Industries brings to the merger lies in a
product line including more than 20 different product types, and a
number of new developments for the medical sector, such as the dental,
the gynaecological and the heart surgery fields, in which it co-operates
with Biosense. Laser Industries also brings to the merger a presence in
hospitals, a sector presently constituting about half the company's
revenues.
Laser Industries wound up the third quarter with $21 million sales and a
net profit of $2.8 million. In the first nine months of 1997, sales
totalled $56.7 million and profit stood at $8.2 million.
The present merger is expected to create a major Israeli company, with a
market value of $1.1 billion and with sales which, in 1998, will amount
to $250 million.
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