Ravad Controlling Shareholders Move to Take Company Private

The controlling shareholders of Ravad are advancing to the final stage of taking the company private. Roey Gil, Yehuda Sayag, Zvi Lebron, the Tavisal family, and Arnon Shapir have launched a full tender offer for approximately 2.65 million shares, representing about 10.1% of the company, held by the public. The offer price is NIS 8.94 per share, valuing the total transaction at approximately NIS 23.7 million if all shares are acquired. This move, if successful, would lead to Ravad's delisting from the stock exchange.

The offered price of NIS 8.94 is about 30.3% higher than the stock's average price over the past six months, which stood at NIS 6.86. However, on the day before the offer was announced, Ravad's shares were trading at NIS 8.91, meaning the premium over the market price is only about 0.3%. The offer price is also approximately 12.7% below Ravad's net equity of about NIS 268 million, or NIS 10.24 per share, as of the end of June. This indicates the controlling shareholders aim to take the company private at a valuation of around NIS 234 million, below its book value.

The NIS 8.94 share price is based on a recent transaction where the controlling group agreed to purchase shares from Yigal Ahuvi, who then held about 16% of Ravad, at the same price. Ahuvi sold approximately 3.14 million shares for about NIS 28.1 million in early September and has committed to tendering his remaining 4% stake. Company Chairman Arnon Shapir, CEO Eyal Bigon, and CFO Batya Mani have also committed to tendering their shares.

To complete the acquisition, the controlling shareholders, who already hold 90% of the company, need to meet statutory response conditions. One path requires acceptances for over half of the tendered shares, totaling about 1.34 million shares. Alternatively, the delisting can proceed if less than 2% of the company's shares remain in the hands of dissenting shareholders. The deadline for shareholders to respond to the offer is September 23.

Even if this tender offer fails, the controlling shareholders have indicated a potential future delisting through a reverse triangular merger. The core intention remains clear: the controlling shareholders, already holding nearly all of Ravad, seek to finalize the privatization process. The public is offered a price consistent with a recent private transaction, significantly above the recent average but with a minimal market premium and a discount to net equity.