Mer Industries Ltd. jumped the most in almost 14 years 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, surged 15 percent, the most since December 1999, to 44.88 shekels at the close in Tel Aviv. More than 36,000 shares traded, or 15 times the three-month daily average. The stock has gained 20 percent this year compared with a 4.8 percent advance for the TA-100 Index.
Mer, which has telecom, security and clean tech operations, as well as a holding in Spacecom Communications Ltd., 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., the Gedera, Israel-based maker of heat-transfer equipment for defense and electronic systems. TAT shares have gained 6.3 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.