Mer Industries Ltd. (CMER) headed for the biggest surge on record after the communication services provider said Fimi Opportunity Funds is in talks to pay 95 million shekels ($27 million) for a 30 percent stake.
The shares of the Holon, Israel-based services provider, jumped 18 percent, the most since at least February 1996 when Bloomberg started tracking the company, to 45.9 shekels at 3:18 p.m. in Tel Aviv. More than 28,000 shares traded, or almost 12 times the three-month daily average. The stock has gained 23 percent this year compared with a 4.7 percent advance for the TA-100 Index. (TA-100)
Mer, which has telecom, security and clean tech operations, as well as a holding in Spacecom Communications Ltd. (SCC), will distribute a 77 million-shekel dividend as part of the investment deal. Tel Aviv-based Fimi in June paid 125 million shekels for a 53.8 percent stake in TAT Technologies Ltd. (TATT), the Gedera, Israel-based maker of heat-transfer equipment for defense and electronic systems. TAT shares have gained 7.2 percent since the announcement.
“Mer has a diversified and attractive structure of activities which is reflected in the price for the stake,” Matzbie Raanan, head of investments at Migdal Capital Markets Ltd. in Tel Aviv, said by phone. “The entry of Fimi could help expand the global exposure of the group through international cooperations.”
Mer also holds a 25 percent stake in Israeli startup Oplon Pure Science Ltd., which last year entered into a cooperation agreement with New Zealand-based Reynolds Group Holdings Ltd., to develop and commercialize antimicrobial packaging for foods and beverages.
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