Investment Fund FIMI to Acquire Majority Stake in Robotics Firm Mitzpe Ramon
Translated & summarized from Ice by baba
The FIMI investment fund is set to acquire a controlling stake in the robotics company Mitzpe Ramon for 200 million shekels, valuing the company at 200 million shekels. This represents a significant drop from its 2021 peak valuation of 9.1 billion shekels. The deal, which includes options for further investment, requires shareholder approval and grants FIMI exclusive negotiation rights for 60 days. Existing shareholders will face substantial dilution.
The story in 6 lines · by baba
- FIMI fund will invest 200 million shekels for a 50% stake in Mitzpe Ramon.
- The deal values Mitzpe Ramon at 200 million shekels, a sharp decline from its 2021 peak.
- Mitzpe Ramon's valuation in 2021 reached approximately 9.1 billion shekels.
- FIMI secured options for additional investments up to 2028.
- The transaction is subject to shareholder approval and due diligence.
- Existing shareholders will experience significant dilution of their holdings.
The investment saga of Mitzpe Ramon, a kibbutz-based robot manufacturer for pool cleaning, has reached a critical juncture. The company announced Friday that the FIMI investment fund, led by Yishai Davidi, is moving significantly towards acquiring a controlling stake. The parties have signed a memorandum of understanding, under which FIMI will inject 200 million shekels directly into the company's coffers in exchange for 50% of its shares. This deal values Mitzpe Ramon at only 200 million shekels pre-money, a considerable drop from earlier market estimates of around 300 million shekels. The share price set by the deal is 1,821 shekels, a discount of about 7% from the current market price on the Tel Aviv Stock Exchange. If approved, existing shareholders will face a dilution of nearly half their holdings, and Kibbutz Yizrael's stake will decrease to 28%. FIMI also secured options for future investments: an additional 50 million shekels by the end of 2027 at a 250 million shekel valuation, and another 100 million shekels by the end of 2028 at a 300 million shekel valuation. Mitzpe Ramon has granted FIMI exclusive negotiation and due diligence rights for 60 days, with an automatic extension option until December 31. An independent committee has been formed to manage the negotiations, and the deal requires approval from the shareholders' meeting. FIMI's entry highlights the dramatic collapse in Mitzpe Ramon's valuation. In its peak year of 2021, the company was valued at approximately 9.1 billion shekels, with each kibbutz member's share worth nearly 17 million shekels. Today, that same holding is valued at only about 300,000 shekels. However, the kibbutz has benefited from hundreds of millions of shekels in dividends over the prosperous years.
