Net.Game to be issued in the US at the value of $175 M
Among the underwriters being negotiated with: Piper Jeffrey, Oppenheimer, Morgan Stanley and Dresdner
By Galit Hami (yedioot achronot May-26)
NetGame Company, of BVR Technologies, will be issued at the value of $175 million, as reveled to "Yediot Ahronot".
The company received offers from several underwriters in the US and Europe, including Oppenhiemer, Piper Jeffrey, Morgan Stanley and Dresdner Investment Bank of Germany.
It was also revealed that the highest bid was from Dresdner, at the value of $200 million. However, estimates are that the underwriting will be performed in the US stock exchange, and the probable choice of underwriter will be Piper Jeffrey.
The Wall Street stock market has been weak lately, however BVR Technologies' stocks are performing strongly. The day before yesterday they rose by an additional 2.9% to the price of $6.75 a share. This price reflects the market value of approximately $50 million, which represents a significant discount in regards to the value of BVR Technologies' holdings in NetGame alone.
BVR Technologies holds 47% of NetGame's stocks, fully diluted. According to the expected issuing value, BVR Technologies' holdings in the company are valued at $82 million.
Other than its holdings in NetGame, BVR Technologies holds about 55% of R.T.Set's shares. The private issuing that R.T.Set performed recently was valued at
$35 million. They also own 5 million Nexus shares, currently valued at $13 million.
Together with NetGame, BVR Technologies' holdings are valued at about $115 million, reflected in the price of $15 a share.
NetGame develops two product lines - digital communication modems through cable television networks, and multi - participant video games, based on telephony communications or PC, combined with cable television.
The company has sold commercially to several kibbutzs in Israel, and is presently conducting an experiment with the Tevel cable network. The company's sales in the first quarter of the year is valued at approximately $3 million.
NetGame's issuance is planned for September.
The other shareholders of NetGame include Technoplast Technologies, which holds 3%, Shrem-Pudim-Kelner Group, which holds 12% of the company directly. The additional 15% of BVR Technologies are held be Benny Steinmatz and Eli Horowitz.
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